In the latest trading session, ServiceNow (NOW) closed at $1,022.98, marking a -1.16% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.03%.
Coming into today, shares of the maker of software that automates companies' technology operations had gained 0.79% in the past month. In that same time, the Computer and Technology sector gained 5.58%, while the S&P 500 gained 3.94%.
The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2025. It is anticipated that the company will report an EPS of $3.54, marking a 13.1% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.12 billion, up 18.79% from the year-ago period.
NOW's full-year Zacks Consensus Estimates are calling for earnings of $16.54 per share and revenue of $13.01 billion. These results would represent year-over-year changes of +18.82% and +18.43%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for ServiceNow. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 0.14% higher. ServiceNow is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 62.59 right now. This expresses a premium compared to the average Forward P/E of 19.88 of its industry.
One should further note that NOW currently holds a PEG ratio of 2.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.2.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 70, putting it in the top 29% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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