In the latest close session, ServiceNow (NOW) was down 4.5% at $968.09. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.09%.
Shares of the maker of software that automates companies' technology operations have appreciated by 0.93% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.2%, and the S&P 500's gain of 4.37%.
Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on July 23, 2025. In that report, analysts expect ServiceNow to post earnings of $3.54 per share. This would mark year-over-year growth of 13.1%. At the same time, our most recent consensus estimate is projecting a revenue of $3.12 billion, reflecting a 18.79% rise from the equivalent quarter last year.
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 note any recent changes to analyst estimates for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Currently, ServiceNow is carrying a Zacks Rank of #2 (Buy).
Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 61.3. This denotes a premium relative to the industry average Forward P/E of 20.02.
We can also see that NOW currently has a PEG ratio of 2.59. 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 of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.09.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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ServiceNow, Inc. (NOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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