ServiceNow (NOW) closed the latest trading day at $1,081.46, indicating a -1.61% change from the previous session's end. This move lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.

Shares of the maker of software that automates companies' technology operations have appreciated by 5.54% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.27% and the S&P 500's gain of 0.4%.

Analysts and investors alike will be keeping a close eye on the performance of ServiceNow in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.60, indicating a 15.76% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.96 billion, up 21.3% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.87 per share and revenue of $10.98 billion, indicating changes of +28.66% and +22.35%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for ServiceNow. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, ServiceNow boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that ServiceNow has a Forward P/E ratio of 79.25 right now. This denotes a premium relative to the industry's average Forward P/E of 28.61.

We can also see that NOW currently has a PEG ratio of 3.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 2.88.