The most recent trading session ended with ServiceNow (NOW) standing at $827.74, reflecting a -1.29% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.33% loss on the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.53%.
Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 10.98% over the past month. This has lagged the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03% in that time.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. On that day, ServiceNow is projected to report earnings of $3.78 per share, which would represent year-over-year growth of 10.85%. Alongside, our most recent consensus estimate is anticipating revenue of $3.09 billion, indicating a 18.55% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.22 per share and a revenue of $13.04 billion, signifying shifts of +16.52% and +18.69%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ServiceNow currently has a Forward P/E ratio of 51.7. This signifies a premium in comparison to the average Forward P/E of 22.14 for its industry.
Investors should also note that NOW has a PEG ratio of 2.15 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 2.02 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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