ServiceNow (NOW) closed the latest trading day at $1,049.08, indicating a -0.48% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The maker of software that automates companies' technology operations's stock has dropped by 8.55% in the past month, falling short of the Computer and Technology sector's loss of 0.39% and the S&P 500's loss of 2.7%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is predicted to post an EPS of $3.60, indicating a 15.76% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.96 billion, indicating a 21.3% upward movement from the same quarter last year.
Investors might also notice recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, there's been a 0.06% rise in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #2 (Buy).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 63.94. This signifies a premium in comparison to the average Forward P/E of 28.17 for its industry.
We can additionally observe that NOW currently boasts a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 2.53 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
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