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ServiceNow (NOW) closed the most recent trading day at $533.74, moving +0.63% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.31%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 12.58% over the past month, outpacing the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 1.56% in that time.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $1.20 per share, which would represent a year-over-year decline of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 26.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.50 per share and revenue of $5.72 billion. These totals would mark changes of +18.79% and +26.57%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NOW. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% higher. NOW is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that NOW has a Forward P/E ratio of 96.5 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.72.
Meanwhile, NOW's PEG ratio is currently 3.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOW's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
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