In the latest trading session, ServiceNow (NOW) closed at $291.94, marking a -1.34% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.66%.
Heading into today, shares of the maker of software that automates companies' technology operations had gained 6.38% over the past month, outpacing the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 3.15% in that time.
Investors will be hoping for strength from NOW as it approaches its next earnings release, which is expected to be April 29, 2020. The company is expected to report EPS of $0.96, up 43.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.02 billion, up 29.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.20 per share and revenue of $4.35 billion, which would represent changes of +26.51% and +25.71%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NOW. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 moved 14.78% lower. NOW currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, NOW is holding a Forward P/E ratio of 70.43. This represents a premium compared to its industry's average Forward P/E of 21.85.
Also, we should mention that NOW has a PEG ratio of 2.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NOW's industry had an average PEG ratio of 1.59 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 135, which puts it in the bottom 48% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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