ServiceNow (NOW) Stock Sinks As Market Gains: Here's Why

The latest trading session saw ServiceNow (NOW) ending at $850.63, denoting a -1.9% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.55%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.7%.Heading into today, shares of the maker of software that automates companies' technology operations had lost 15.27% over the past month, lagging the Computer and Technology sector's loss of 8.51% and the S&P 500's loss of 5.56% in that time.Market participants will be closely following the financial results of ServiceNow in its upcoming release. On that day, ServiceNow is projected to report earnings of $3.78 per share, which would represent year-over-year growth of 10.85%. Meanwhile, our latest consensus estimate is calling for revenue of $3.09 billion, up 18.55% from the prior-year quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $16.24 per share and revenue of $13.04 billion, which would represent changes of +16.67% and +18.69%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 53.39. For comparison, its industry has an average Forward P/E of 22.85, which means ServiceNow is trading at a premium to the group.Also, we should mention that NOW has a PEG ratio of 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.12 at yesterday's closing price.The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons of all 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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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