ServiceNow (NOW) stock rose -0.56%: What you should know-October 19, 2020

ServiceNow

ServiceNow (right now Free Report) closed at $521.95 on the latest trading day, an increase of -0.56% from the previous trading day. This change is smaller than the 1.63% drop in the S&P 500 that day. At the same time, the Dow Jones index fell by 1.44%, and the high-tech Nasdaq index fell by 1.65%.

Entering today, the stock price of software manufacturers in the automation company’s technology business has risen 15.66% in the past month, surpassing the 5.81% increase in the computer and technology industry and the 2.86% increase in the S&P 500 at that time.

Wall Street will seek the positive attitude of NOW before the release date of the next earnings report. It is expected that this will be October 28, 2020. In the report, analysts expect NOW’s earnings per share to be $1.03. This will mark a year-on-year growth of 4.04%. At the same time, the “Zacks Consensus” revenue forecast predicts net sales of $1.11 billion, an increase of 25.34% over the same period last year.

For the full year, our Zacks Consensus estimates project earnings per share of $4.43 and revenue of $4.41 billion, representing an increase of 33.43% and 27.38% over the previous year.

Investors should also pay attention to the latest changes in analyst estimates for NOW. Recent revisions tend to reflect the latest recent business trends. With this in mind, we can consider the 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. Investors can use the Zacks ranking to take advantage of this. The model takes into account the changes in these estimates and provides a simple and feasible rating system.

The Zacks Rank system ranks from #1 (Strong Buy) to #5 (Strong Sell) and has an impressive external audit performance record. Since 1988, the number one stock has an average annual return of 25% . In the past 30 days, our earnings per share forecast has remained stagnant. Now Zacks ranks third (hold).

Judging from its valuation, NOW’s forward P/E ratio is now 118.36. The industry’s average forward price-to-earnings ratio is 27.64, so we can conclude that the current transaction price of NOW is relatively high.

It is also worth noting that the PEG ratio of NOW is now 4.15. This popular indicator is similar to the well-known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. Computer-Based on yesterday’s closing price, the average PEG ratio of IT Services stock is 2.31.

The computer-IT service industry belongs to the computer and technology industry. The industry’s current Zacks industry ranking is 118, ranking in the top 47% of all 250+ industries.

The Zacks Industry Ranking measures the strength of our industry group by measuring the average Zacks Rank of individual stocks in the group. Our research shows that the top 50% of industries are two to one times higher than those in the second half.

You can find more information about all these indicators, and more information on Zacks.com.

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