The latest trading session ended with ServiceNow (NOW) at $757.55, down 0.21%. The stock outperformed the S&P 500's 1.23% daily loss. Meanwhile, the Dow fell 1.36% and the tech-heavy Nasdaq 1.4%. Shares of the technology automation software firm have gained 2.44% in the past month before today's trade. This outperformed the Computer and Technology sector's 2.32% increase and the S&P 500's 1.61% gain.
ServiceNow's future financial reports will be eagerly watched by investors. The corporation will report earnings on April 24, 2024. The company's EPS is expected to rise 32.07% to $3.13 from the same quarter last year. Our newest consensus estimate predicts $2.58 billion in revenue, up 23.22% from the year-ago quarter.
The Zacks Consensus Estimates predict $13.18 per share and $10.86 billion in revenue for the entire year, up 22.26% and 21.09%, respectively.
Investors should also consider ServiceNow analyst estimate changes. Recent changes frequently reflect short-term business practices. Positive estimate revisions indicate analyst optimism about the company's business and profitability.
Our research shows that estimate changes predict stock price performance. Our quantitative Zacks Rank rating system uses these estimate revisions to capitalize on this.
The Zacks Rank methodology, from #1 (Strong Buy) to #5 (Strong Sell), has outperformed, as verified by third-party audits. Since 1988, #1 stocks have returned +25% annually. The Zacks Consensus EPS estimate hasn't changed in 30 days. ServiceNow is #3 (Hold) on Zacks.
Value is crucial, thus investors should examine ServiceNow's Forward P/E of 57.6. The average Forward P/E of its industry is 24.53, therefore ServiceNow may be trading at a premium.
Note that NOW's PEG ratio is 2.24. PEG ratios are similar to P/E ratios, but they also consider the company's predicted earnings growth rate. At yesterday's finish, the Computers - IT Services industry had a 2.28 PEG ratio. Computers - IT Services is part of Computer and Technology. The Zacks Industry Rank of 47 puts this group in the top 19% of 250+ industries.
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