ServiceNow (NOW) Suffers a Larger Drop Than the General Market: Key Insights

ServiceNow (NOW) ended the recent trading session at $1,054.34, demonstrating a -0.55% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.Shares of the maker of software that automates companies' technology operations witnessed a loss of 5.61% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.86% and the S&P 500's loss of 2.36%.The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is forecasted to report an EPS of $3.60, showcasing a 15.76% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.96 billion, showing a 21.3% escalation compared to the year-ago quarter.It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 64.63. For comparison, its industry has an average Forward P/E of 27.7, which means ServiceNow is trading at a premium to the group.Also, we should mention that NOW has a PEG ratio of 2.62. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.58.The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% 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.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.Just Released: Zacks Top 10 Stocks for 2024Hurry – 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks