ServiceNow (NOW) Stock Sinks As Market Gains: What You Should Know

ServiceNow (NOW) closed at $147.45 in the latest trading session, marking a -3.75% move from the prior day. This change lagged the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%. The maker of software that automates companies' technology operations's shares have seen a decrease of 8.69% over the last month, not keeping up with the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.The investment community will be paying close attention to the earnings performance of ServiceNow in its upcoming release. The company is expected to report EPS of $0.87, up 19.18% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.52 billion, indicating a 19.19% increase compared to the same quarter of the previous year. NOW's full-year Zacks Consensus Estimates are calling for earnings of $3.46 per share and revenue of $13.23 billion. These results would represent year-over-year changes of +24.46% and 0%, respectively. Any recent changes to analyst estimates for ServiceNow should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. 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 past month, the Zacks Consensus EPS estimate has shifted 0.04% downward. ServiceNow is currently sporting a Zacks Rank of #3 (Hold). Looking at valuation, ServiceNow is presently trading at a Forward P/E ratio of 37.97. This signifies a premium in comparison to the average Forward P/E of 16.8 for its industry. Investors should also note that NOW has a PEG ratio of 1.55 right now. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.59. The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. 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