ServiceNow (NOW) ended the recent trading session at $1,054.34, demonstrating a -0.55% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.16%.

Shares of the maker of software that automates companies' technology operations witnessed a loss of 5.61% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.86% and the S&P 500's loss of 2.36%.

The investment community will be closely monitoring the performance of ServiceNow in its forthcoming earnings report. The company is forecasted to report an EPS of $3.60, showcasing a 15.76% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.96 billion, showing a 21.3% escalation compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for ServiceNow. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. ServiceNow is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note ServiceNow's current valuation metrics, including its Forward P/E ratio of 64.63. For comparison, its industry has an average Forward P/E of 27.7, which means ServiceNow is trading at a premium to the group.

Also, we should mention that NOW has a PEG ratio of 2.62. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.58.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% of all 250+ industries.