Yahoo Finance ServiceNow (NOW) Dips More Than Broader Market: What You Should Know
The latest trading session saw ServiceNow (NOW) ending at $739.59, denoting a -1.3% adjustment from its last day's close. This change lagged the S&P 500's 0.31% loss on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.
Shares of the maker of software that automates companies' technology operations witnessed a gain of 1.47% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.41% and the S&P 500's gain of 2.73%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company's upcoming EPS is projected at $2.85, signifying a 20.25% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.61 billion, indicating a 21.22% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.51 per share and a revenue of $10.88 billion, signifying shifts of +25.32% and +21.31%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ServiceNow currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 55.47. This signifies a premium in comparison to the average Forward P/E of 26.57 for its industry.
Investors should also note that NOW has a PEG ratio of 2.26 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NOW's industry had an average PEG ratio of 2.94 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 41% of all 250+ industries.
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.
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
