ServiceNow (NOW) Stock Moves -0.48%: What You Should Know

In the latest trading session, ServiceNow (NOW) closed at $453.80, marking a -0.48% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 1.27%.

Coming into today, shares of the maker of software that automates companies' technology operations had gained 4.32% in the past month. In that same time, the Computer and Technology sector gained 0.69%, while the S&P 500 gained 0.6%.

Wall Street will be looking for positivity from NOW as it approaches its next earnings report date. In that report, analysts expect NOW to post earnings of $1.04 per share. This would mark year-over-year growth of 5.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.11 billion, up 25.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.45 per share and revenue of $4.41 billion, which would represent changes of +34.04% and +27.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NOW. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOW is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that NOW has a Forward P/E ratio of 102.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 28.08.

We can also see that NOW currently has a PEG ratio of 3.55. 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. The Computers - IT Services was holding an average PEG ratio of 2.39 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 23% 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.

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

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