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ServiceNow (NOW) Stock Moves -1.41%: What You Should Know

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ServiceNow (NOW - Free Report) closed the most recent trading day at $507.74, moving -1.41% from the previous trading session. This change was narrower than the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the maker of software that automates companies' technology operations had lost 20.6% over the past month. This has lagged the Computer and Technology sector's loss of 6.14% and the S&P 500's loss of 1.79% in that time.

Wall Street will be looking for positivity from ServiceNow as it approaches its next earnings report date. This is expected to be January 26, 2022. On that day, ServiceNow is projected to report earnings of $1.43 per share, which would represent year-over-year growth of 22.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.6 billion, up 28.06% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for ServiceNow. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.61% lower within the past month. ServiceNow is currently a Zacks Rank #4 (Sell).

Looking at its valuation, ServiceNow is holding a Forward P/E ratio of 71.93. This represents a premium compared to its industry's average Forward P/E of 25.36.

It is also worth noting that NOW currently has a PEG ratio of 2.54. 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. The Computers - IT Services was holding an average PEG ratio of 1.46 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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