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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
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ServiceNow (NOW - Free Report) closed at $884.86 in the latest trading session, marking a -0.58% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 9.33% over the past month, outpacing the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% in that time.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.46, up 18.49% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.74 billion, indicating a 19.78% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.75 per share and a revenue of $10.9 billion, demonstrating changes of +27.55% and +21.51%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 64.73. This expresses a premium compared to the average Forward P/E of 27.83 of its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.76.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 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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ServiceNow (NOW) Stock Declines While Market Improves: Some Information for Investors
ServiceNow (NOW - Free Report) closed at $884.86 in the latest trading session, marking a -0.58% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 9.33% over the past month, outpacing the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71% in that time.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.46, up 18.49% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.74 billion, indicating a 19.78% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.75 per share and a revenue of $10.9 billion, demonstrating changes of +27.55% and +21.51%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 64.73. This expresses a premium compared to the average Forward P/E of 27.83 of its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.76.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 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.