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Why ServiceNow (NOW) Outpaced the Stock Market Today
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ServiceNow (NOW - Free Report) closed the most recent trading day at $875.96, moving +1.84% from the previous trading session. This change outpaced the S&P 500's 1.07% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.17%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's loss of 0.16% and the S&P 500's gain of 2.92% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. In that report, analysts expect ServiceNow to post earnings of $3.46 per share. This would mark year-over-year growth of 18.49%. In the meantime, our current consensus estimate forecasts the revenue to be $2.74 billion, indicating a 19.78% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.75 per share and revenue of $10.9 billion, indicating changes of +27.55% and +21.51%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 62.56. This represents a premium compared to its industry's average Forward P/E of 26.93.
Meanwhile, NOW's PEG ratio is currently 2.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.99.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why ServiceNow (NOW) Outpaced the Stock Market Today
ServiceNow (NOW - Free Report) closed the most recent trading day at $875.96, moving +1.84% from the previous trading session. This change outpaced the S&P 500's 1.07% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 2.17%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 5.05% over the past month. This has outpaced the Computer and Technology sector's loss of 0.16% and the S&P 500's gain of 2.92% in that time.
Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. In that report, analysts expect ServiceNow to post earnings of $3.46 per share. This would mark year-over-year growth of 18.49%. In the meantime, our current consensus estimate forecasts the revenue to be $2.74 billion, indicating a 19.78% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.75 per share and revenue of $10.9 billion, indicating changes of +27.55% and +21.51%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 62.56. This represents a premium compared to its industry's average Forward P/E of 26.93.
Meanwhile, NOW's PEG ratio is currently 2.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.99.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.