ServiceNow (NOW) Laps the Stock Market: Here's Why

ServiceNow (NOW) closed the most recent trading day at $966.97, moving +1.05% from the previous trading session. This change outpaced the S&P 500's 0.32% gain on the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%. Shares of the maker of software that automates companies' technology operations witnessed a loss of 4.78% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 7.22%, and the S&P 500's gain of 4.51%.Investors will be eagerly watching for the performance of ServiceNow in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 23, 2025. The company is forecasted to report an EPS of $3.54, showcasing a 13.1% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.12 billion, up 18.79% from the year-ago period. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.54 per share and a revenue of $13.01 billion, indicating changes of +18.82% and +18.43%, respectively, from the former 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, 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 0.12% higher within the past month. ServiceNow presently features a Zacks Rank of #3 (Hold). Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 57.87. This indicates a premium in contrast to its industry's Forward P/E of 18.94. Also, we should mention that NOW has a PEG ratio of 2.44. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.92. The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% of all 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. You can find more information on all of these metrics, and much more, on Zacks.com. 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