ServiceNow (NOW) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, ServiceNow (NOW) reached $762.40, with a +0.45% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq lost 0.12%.
The the stock of maker of software that automates companies' technology operations has fallen by 0.1% in the past month, lagging the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.13, up 32.07% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.58 billion, showing a 23.22% escalation compared to the year-ago quarter.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $13.18 per share and revenue of $10.86 billion. These results would represent year-over-year changes of +22.26% and +21.09%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. ServiceNow is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 57.59. This indicates a premium in contrast to its industry's Forward P/E of 25.85.
Meanwhile, NOW's PEG ratio is currently 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 2.4 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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, Inc. (NOW) : Free Stock Analysis Report
