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ServiceNow (NOW) Stock Moves -1.50%: What You Should Know

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ServiceNow (NOW - Free Report) ended the recent trading session at $125.40, demonstrating a -1.5% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 1.76%, and the Nasdaq, a tech-heavy index, lost 2.39%.

Heading into today, shares of the maker of software that automates companies' technology operations had lost 18.75% over the past month, lagging the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.

Market participants will be closely following the financial results of ServiceNow in its upcoming release. The company plans to announce its earnings on January 28, 2026. 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.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and a revenue of $13.23 billion, representing changes of +24.46% and 0%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for ServiceNow. 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 business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. ServiceNow presently features a Zacks Rank of #3 (Hold).

In terms of valuation, ServiceNow is presently being traded at a Forward P/E ratio of 31.56. Its industry sports an average Forward P/E of 17.01, so one might conclude that ServiceNow is trading at a premium comparatively.

Also, we should mention that NOW has a PEG ratio of 1.29. 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 1.43.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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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