Yahoo Finance ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
ServiceNow (NOW) closed at $542.96 in the latest trading session, marking a -0.33% move from the prior day. This change lagged the S&P 500's 0.99% gain on the day.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 24.64% over the past month, outpacing the Computer and Technology sector's gain of 8.96% and the S&P 500's gain of 0.42% in that time.
Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. The company is expected to report EPS of $2.05, up 26.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 21.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $8.81 billion, which would represent changes of +26.35% and +21.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.02% higher. ServiceNow is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 56.83. Its industry sports an average Forward P/E of 21.07, so we one might conclude that ServiceNow is trading at a premium comparatively.
Meanwhile, NOW's PEG ratio is currently 2.26. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.01 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 74, which puts it in the top 30% 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
