In the latest trading session, ServiceNow (NOW) closed at $355.44, marking a -0.38% move from the previous day. This move was narrower than the S&P 500’s daily loss of 0.67%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.22%.
Before today’s trading, shares of the software maker that automates companies’ technology operations had lost 13.23% over the past month. It trailed the Computer & Technology sector’s loss of 5.64% and the S&P 500’s loss of 3.76% during that period.
Investors will be expecting strength from ServiceNow as it approaches its next earnings release, which is expected on October 26, 2022. The company is expected to report EPS of $1.85, up 19.35% from the prior year quarter. Meanwhile, our latest consensus estimate calls for revenue of $1.85 billion, up 22.66% from the year-ago quarter.
Looking at the full year, our Zacks Consensus Estimates suggest that analysts expect earnings of $7.31 per share and revenue of $7.31 billion. These totals would mark changes of +23.48% and +24.01%, respectively, from last year.
Any recent changes in analyst estimates for ServiceNow should also be noted by investors. These changes usually reflect the latest short-term business trends, which can change frequently. Consequently, positive estimate changes reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimates are directly related to team close stock moves. To take advantage of this, we developed Zacks Rank, a proprietary model that takes these estimation changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has an impressive track record of outside success, with the #1 stock delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has moved 0.16 % lower. ServiceNow currently has a Zacks Rank #3 (Hold).
Looking at its valuation, ServiceNow holds a Forward P/E ratio of 48.82. Its industry sports an average Forward P/E of 21.38, so we can assume that ServiceNow is trading at a premium.
We can also see that NOW currently has a PEG ratio of 1.71. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Computers – IT Services stocks are, on average, with a PEG ratio of 1.13 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 90, placing it in the top 36% 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 outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock moving metrics, and more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Now, you can download 7 Best Stocks for 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.
Zacks Investment Research