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ServiceNow Inc. (NYSE: NOW) – An Analysis Is What You Need

ServiceNow Inc. (NYSE:NOW) traded at $433.29 at last check on Tuesday, 01/24/23, made a downward move of -2.28% on its previous day’s price.

Looking at the stock we see that its previous close was $443.41 with the day’s price range being $437.00 – $446.00. The company has a trailing 12-month PE ratio of 448.34. In terms of its 52-week price range, NOW has a high of $621.41 and a low of $337.00. The company’s stock has gained about 13.14% over that past 30 days.

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ServiceNow Inc. has a market cap of $86.85 billion and is expected to release its quarterly earnings report on Jan 25, 2023. Estimates by analysts give the company expected earnings per share (EPS) of $2.02, with the EPS growth for the year raised at $7.33 for 2022 and $9.12 for next year. These figures represent 23.80% and 24.40% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $1.94 billion, with a low of $1.84 billion and a high of $2.01 billion. The median projection represents growth squeezing down to 20.20% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $7.25 billion, or 22.90% up from figures reported last year.

There have been 3 upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the NOW stock, short term indicators assign the stock an average of 50% Buy, while medium term indicators assign it an average of Hold. Long term indicators on average place the stock in the category of Hold.

Based on estimates by 37 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 3 have rated the ServiceNow Inc. (NOW) stock as a Hold, while 29 rate it as a Buy. 4 analyst(s) rate it as overweight while 0 of them rated it as underweight, whereas 1 suggest the stock as a Sell. The stock has an overall rating of Buy and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the NOW stock currently stands at 17.25, and the most recent price level today is 8.31% off its SMA20 and 8.13% from its 50-day simple moving average. The RSI (14) is pointing at 62.47 while the volatility over the past week is 3.46% and jumps to 3.66% over the past one month. The beta value is 0.97, while the average true range (ATR) is currently pointing at 15.50. The average price target for the stock over the next 12 months is $510.50, with the estimates having a low of $320.00 and a high of $641.00. These price ends are 26.15% and -47.94% off the today’s price level respectively, although investors could be excited at the prospect of a -15.4% if the NOW share price touches on the median price of $500.00.

Let’s briefly compare ServiceNow Inc. (NOW) stock to its peers. We find that today’s price change of -2.28% and -12.67% over the past 12 months for NOW competes that of Salesforce Inc. (CRM), which has seen its stock price fall -2.33% in the latest trading session and is -29.17% over the last one year. Another of its peers Oracle Corporation (ORCL) has dropped -1.49% today, and was 9.10% up over the past year, while Synopsys Inc. (SNPS) is also down -2.36% yet, while its price remains in the green at 15.16% over the same period. ServiceNow Inc. has a P/E ratio of 448.34 compared to Salesforce Inc.’s 559.06 and Oracle Corporation’s 28.01. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at -1.45% and -1.08%, respectively, in early deals.

Coming back to ServiceNow Inc. (NYSE:NOW), we note that the average 3-month trading volume was 1.61 million, while that of the preceding 10-day period stands at 1.62 million. Current shares outstanding are 202.04 million.

The insiders hold 0.10% of the company’s shares while institutions hold 90.80%. The data shows that short shares as of Oct 13, 2022, stood at 3.41 million at a short ratio of 1.75. This represents a 1.69% short interest in shares outstanding on Oct 13, 2022. Shares short fall in October from the previous month at 3.6 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock 14.20% up in year-to-date price movement.

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