ServiceNow (NOW) Beats Stock Market Upswing: What Investors Need to Know
ServiceNow (NOW) ended the recent trading session at $938.65, demonstrating a +1.81% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.71%. On the other hand, the Dow registered a gain of 1.03%, and the technology-centric Nasdaq increased by 0.6%.
Shares of the maker of software that automates companies' technology operations have appreciated by 7.19% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.96% and outperforming the S&P 500's gain of 6.41%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on October 23, 2024. The company's upcoming EPS is projected at $3.46, signifying a 18.49% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.74 billion, indicating a 19.78% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.75 per share and revenue of $10.9 billion. These totals would mark changes of +27.55% and +21.51%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow currently has a Zacks Rank of #3 (Hold).
With respect to valuation, ServiceNow is currently being traded at a Forward P/E ratio of 67.06. For comparison, its industry has an average Forward P/E of 28.27, which means ServiceNow is trading at a premium to the group.
It is also worth noting that NOW currently has a PEG ratio of 2.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. NOW's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report