ServiceNow (NOW) closed the most recent trading day at $275.32, moving -0.02% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.32%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had gained 3.27% over the past month. This has outpaced the Computer and Technology sector's gain of 2.43% and lagged the S&P 500's gain of 3.31% in that time.
NOW will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.64, up 30.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $830.92 million, up 31.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $3.44 billion, which would represent changes of +28.51% and +32.04%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. NOW currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NOW is holding a Forward P/E ratio of 85.96. Its industry sports an average Forward P/E of 19.04, so we one might conclude that NOW is trading at a premium comparatively.
Investors should also note that NOW has a PEG ratio of 3.07 right now. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
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