ServiceNow (NOW) Stock Dips While Market Gains: Key Facts

ServiceNow (NOW) ended the recent trading session at $97.47, demonstrating a -3.06% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Elsewhere, the Dow saw an upswing of 2.85%, while the tech-heavy Nasdaq appreciated by 2.8%.

Heading into today, shares of the maker of software that automates companies' technology operations had lost 13.77% over the past month, lagging the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.

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 April 22, 2026. The company's upcoming EPS is projected at $0.95, signifying a 17.28% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.75 billion, up 21.39% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.14 per share and revenue of $15.98 billion, indicating changes of +17.95% and +20.32%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. ServiceNow presently features a Zacks Rank of #4 (Sell).

In the context of valuation, ServiceNow is at present trading with a Forward P/E ratio of 24.27. This valuation marks a premium compared to its industry average Forward P/E of 12.98.

It is also worth noting that NOW currently has a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 1.12 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

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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This article originally published on Zacks Investment Research (zacks.com).

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