ServiceNow (NOW) closed at $268.74 in the latest trading session, marking a +1.09% move from the prior day. This move outpaced the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, added 0.07%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 0.03% in the past month. In that same time, the Computer and Technology sector gained 4.17%, while the S&P 500 gained 4.25%.
NOW will be looking to display strength as it nears its next earnings release. On that day, NOW is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 30.88%. Our most recent consensus estimate is calling for quarterly revenue of $886.13 million, up 31.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $3.46 billion. These totals would mark changes of +30.12% and +32.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for NOW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 1.18% lower within the past month. NOW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, NOW currently has a Forward P/E ratio of 82.09. This valuation marks a premium compared to its industry's average Forward P/E of 22.35.
We can also see that NOW currently has a PEG ratio of 2.93. 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. The Computers - IT Services industry currently had an average PEG ratio of 1.78 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
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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