You are reading Entrepreneur United, which is the international franchise of Entrepreneur Media. This story originally appeared in Zacks
ServiceNow (NOW) closed at $664.22 on the latest trading day, an increase of 0.24% from the previous day. The stock lags behind the 1.21% daily gain of the Standard & Poor’s 500 Index.
-Zacks
Entering today, the stock price of this company’s technology operation automation software manufacturer has risen by 6.69% in the past month. At the same time, the computer and technology sectors rose 1.28%, while the S&P 500 index fell 0.9%.
Wall Street will look for positive factors from NOW as it approaches the next earnings report date. In the report, analysts expect NOW earnings per share to be $1.38. This will mark a year-on-year increase of 14.05%. Our most recent consensus estimate is that quarterly revenue was US$1.48 billion, an increase of 28.06% over the same period last year.
NOW’s full-year Zacks consensus estimate requires earnings per share of $5.80 and revenue of $5.83 billion. These results will represent year-on-year changes of +25.27% and +28.97%, respectively.
Investors should also pay attention to any changes in analysts’ recent estimates of NOW. Recent revisions often reflect the latest recent business trends. With this in mind, we can view a positive estimate revision as a sign of optimism about the company’s business prospects.
Research shows that these estimate revisions are directly related to recent share price momentum. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these estimated changes into account and provides a clear and actionable rating model.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has an excellent, externally audited record of success. Since 1988, the #1 stock has an average annual return of +25%. In the past 30 days, our consensus earnings per share forecast has improved by 1.52%. NOW’s current Zacks ranking is #3 (hold).
In-depth study of valuation, NOW’s current forward price-to-earnings ratio is 114.3. Compared with the industry average forward P/E ratio of 34.36, this valuation marks a premium.
At the same time, NOW’s PEG ratio is currently 4.06. This popular indicator is similar to the well-known price-to-earnings ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Based on yesterday’s closing price, the average PEG ratio for computer-IT service stocks is 1.96.
Computer-The IT service industry is part of the computer and technology sector. The industry’s current Zacks industry ranking is 217, which is the bottom 15% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks ranking of individual stocks in the group. Our research shows that the top 50% of industries perform better than the 2 to 1 in the second half.
You can find more information about all these indicators, and more information on Zacks.com.
More stock news: This is bigger than the iPhone!
It may become the mother of all technological revolutions. Apple has only sold 1 billion iPhones in 10 years, but a new breakthrough is expected to produce more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a special report focusing on this fast-emerging phenomenon and the 4 stock symbols that use it. If you don’t buy it now, you may kick yourself in 2022.
Click here to view 4 transactions >>
Want the latest advice from Zacks Investment Research? Today, you can download the 7 best stocks for the next 30 days.Click to get this free report
ServiceNow, Inc. (NOW): Free stock analysis report
To read this article on Zacks.com, click here.
.
#ServiceNow #gains #lags #market
More from Source