ServiceNow (NOW) closed the most recent trading day at $ 548.69, moving -1.47% from the previous trading session. This change was caught at 0.34% earned by the S&P 500 on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.
Prior to today’s trade, the shares of the software maker that automates the company’s technology operations were down 0.96% last month. It caught the Computer and Technology sector’s gain of 2.36% and the S&P 500’s gain of 3.75% during that period.
ServiceNow will look to show strength as it approaches the next revenue release. The company is expected to report EPS of $ 1.41, down 7.24% from last year’s quarter. Meanwhile, the Zacks Consensus Estimate for revenue forecasts net sales of $ 1.69 billion, up 24.56% from the previous year.
Looking at the full year, our Zacks Consensus Estimates suggests that analysts expect revenues of $ 7.35 per share and revenue of $ 7.39 billion. These totals will mark changes of +24.16% and +25.34%, respectively, from last year.
It is also important to note recent changes to analyst estimates for ServiceNow. These changes typically reflect the latest short -term business trends, which can change frequently. With this in mind, we can consider positive changes in the estimate as a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimates are directly related to close team stock transfers. We built Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimation and delivers a clear, actionable rating model.
The Zacks Rank system is from #1 (Strong Buy) to #5 (Strong Sell). It has an impressive track record of outside success, with the #1 stock delivering average annual revenue of +25% since 1988. Over the past 30 days, our consensus EPS projection has moved 0.54 % less. ServiceNow currently uses Zacks Rank #4 (Sell).
Looking at its valuation, ServiceNow holds a Forward P/E ratio of 75.74. This valuation marks a premium compared to its industry average Forward P/E of 25.55.
Also, we should mention that NOW has a PEG ratio of 2.69. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected revenue growth rate. Computers – IT Services stocks are, on average, with a PEG ratio of 1.08 based on yesterday’s closing prices.
The Computers – IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 209, which places it in the lowest 18% of all 250+ industries.
The Zacks Industry Rank is listed in order from best to worst in terms of the average Zacks Rank of individual companies within each of these sectors. Our research shows that the top 50% rated industries perform more in the lower half by a factor of 2 to 1.
Be sure to use Zacks.com to follow all of these stock moving metrics, and more, in upcoming trading sessions.
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