ServiceNow (NOW) Declines More Than Market: Some Information for Investors

ServiceNow (NOW) ended the recent trading session at $1,011.89, demonstrating a -1.57% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq decreased by 0.82%. The maker of software that automates companies' technology operations's shares have seen an increase of 1.58% over the last month, not keeping up with the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.17%.Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is expected to report EPS of $3.54, up 13.1% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.12 billion, indicating a 18.79% growth compared to the corresponding quarter of the prior year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.54 per share and a revenue of $13.01 billion, signifying shifts of +18.82% and +18.43%, respectively, from the last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. ServiceNow is currently a Zacks Rank #3 (Hold). From a valuation perspective, ServiceNow is currently exchanging hands at a Forward P/E ratio of 62.17. This expresses a premium compared to the average Forward P/E of 19.73 of its industry. Also, we should mention that NOW has a PEG ratio of 2.62. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices. The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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