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ServiceNow (NOW) closed at $653.80 on the latest trading day, down -1.1% from the previous day. This move lags behind the daily decline of 0.13% in the Standard & Poor’s 500 Index.
-Zacks
Entering today, the stock price of the company’s technology operation automation software manufacturer has risen 14.81% in the past month, surpassing the 4.3% increase in the computer and technology sector and the 2.07% increase in the Standard & Poor’s 500 index over the same period.
As NOW is about to release its next earnings, investors will hope to gain power from NOW. On that day, NOW estimated earnings per share of US$1.38, a year-on-year increase of 14.05%. At the same time, Zacks’ consensus estimate of revenue is expected to net sales of $1.48 billion, an increase of 28.06% over the same period last year.
Throughout the year, our Zacks Consensus Estimate shows that analysts expect earnings per share of $5.80 and revenue of $5.83 billion. These totals will increase by +25.27% and +28.97% respectively over last year.
It is also important to note recent changes in analyst estimates for NOW. Recent revisions often reflect the latest recent business trends. Therefore, we can interpret the positive estimate revision as a good sign of the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to the stock movements of the near-team. Investors can take advantage of this by using Zacks Rank. The model takes into account these estimated changes and provides a simple and actionable rating system.
From #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited outstanding performance record. Since 1988, the average annual return of #1 stock is +25% . In December, the Zacks consensus earnings per share estimate has been higher by 1.61%. NOW’s current Zacks ranking is #3 (hold).
In-depth study of valuation, NOW’s current forward P/E ratio is 114.03. In contrast, its industry’s average forward P/E ratio is 38, which means that NOW’s transaction price is higher than the group’s.
Investors should also note that NOW’s current PEG ratio is 4.05. 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 2.02.
Computer-The IT service industry is part of the computer and technology sector. The industry’s current Zacks industry ranking is 173, which is the bottom 32% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our industry group 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.
Be sure to follow all these stock movement indicators and more on Zacks.com.
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ServiceNow, Inc. (NOW): Free stock analysis report
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