Serve Now (now —— Free report) closed at 632.80 US dollars on the latest trading day, an increase of 1.69% from the previous day. This change exceeded the 1.15% increase of the S&P 500 that day.
Entering today, the stock price of the software manufacturer that automates the company’s technical operations has fallen by 5.76% in the past month. At the same time, the computer and technology sectors fell 6.41%, while the S&P 500 index fell 4.67%.
NOW will seek to show its strength when approaching the next earnings release. On that day, NOW estimated earnings per share of US$1.20, a year-on-year decrease of 0.83%. At the same time, our latest consensus estimate requires revenue of US$1.48 billion, an increase of 28.3% over the same period last year.
NOW’s full-year Zacks Consensus estimates that it requires earnings per share of $5.82 and revenue of $5.83 billion. These results will represent year-on-year changes of +25.7% and +29.09%, respectively.
It is also important to pay attention to the latest changes in NOW analyst estimates. These recent revisions often reflect the evolving nature of short-term business trends. Therefore, the positive estimate revision reflects the analyst’s optimism about the company’s business and profitability.
Based on our research, we believe that these estimate revisions are directly related to the stock movements of the near-team. To benefit from this, we developed the Zacks Rank, a proprietary model that takes into account these estimated changes and provides an operational rating system.
The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell) and has an impressive external audit performance record. Since 1988, the average annual return of #1 stocks is +25% . In the past 30 days, our unanimous earnings per share forecast has improved by 1.94%. NOW’s current Zacks Rank is #2 (Buy).
From the perspective of valuation, NOW’s forward P/E ratio is 106.99. Compared with the industry average forward P/E ratio of 32.71, this valuation marks a premium.
At the same time, NOW’s PEG ratio is currently 3.8. The PEG ratio is similar to the widely used P/E ratio, but the indicator also takes into account the company’s expected earnings growth rate. As of yesterday’s close, NOW’s industry average PEG ratio was 1.8.
Computer-The IT service industry is part of the computer and technology sector. The industry’s current Zacks industry ranking is 210, which is the bottom 18% of all 250+ industries.
The Zacks Industry Ranking includes listings in order from best to worst according to the average Zacks ranking of each company in these industries. Our research shows that the top 50% of industries perform better than the 2 to 1 in the second half.
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