ServiceNow (NOW) Surpasses Market Returns: Some Facts Worth Knowing

ServiceNow (NOW) closed the most recent trading day at $947.79, moving +2.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.94%. Shares of the maker of software that automates companies' technology operations witnessed a gain of 7.12% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.88%, and the S&P 500's gain of 2.32%.The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. In that report, analysts expect ServiceNow to post earnings of $4.22 per share. This would mark year-over-year growth of 13.44%. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 19.88% rise from the equivalent quarter last year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.81 per share and a revenue of $13.14 billion, indicating changes of +20.76% and +19.64%, respectively, from the former year. It is also important to note the recent changes to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ServiceNow presently features a Zacks Rank of #3 (Hold). In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 55.28. This indicates a premium in contrast to its industry's Forward P/E of 17.17. We can also see that NOW currently has a PEG ratio of 2.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.05. The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks