Yahoo Finance ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know
ServiceNow (NOW) closed the most recent trading day at $743.15, moving -0.12% from the previous trading session. This move lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 1.09%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.49% in the past month. In that same time, the Computer and Technology sector gained 8.46%, while the S&P 500 gained 4.44%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on July 24, 2024. On that day, ServiceNow is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 20.25%. At the same time, our most recent consensus estimate is projecting a revenue of $2.61 billion, reflecting a 21.22% rise from the equivalent quarter last 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ServiceNow presently features a Zacks Rank of #3 (Hold).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 55.07. This expresses a premium compared to the average Forward P/E of 27.26 of its industry.
Also, we should mention that NOW has a PEG ratio of 2.25. 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 3.02 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NOW in the coming trading sessions, be sure to utilize Zacks.com.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
