ServiceNow (NOW) Stock Slides as Market Rises: Facts to Know Before You Trade

ServiceNow (NOW) closed at $842.93 in the latest trading session, marking a -0.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.Coming into today, shares of the maker of software that automates companies' technology operations had lost 14.42% in the past month. In that same time, the Computer and Technology sector lost 11.22%, while the S&P 500 lost 7.69%.The upcoming earnings release of ServiceNow will be of great interest to investors. In that report, analysts expect ServiceNow to post earnings of $3.78 per share. This would mark 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.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.24 per share and revenue of $13.04 billion, indicating changes of +16.67% and +18.69%, respectively, compared to the previous year.Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, ServiceNow boasts a Zacks Rank of #3 (Hold).In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 51.99. This signifies a premium in comparison to the average Forward P/E of 21.93 for its industry.One should further note that NOW currently holds a PEG ratio of 2.16. 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 average PEG ratio for the Computers - IT Services industry stood at 2.04 at the close of the market yesterday.The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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