ServiceNow (NOW) closed at $1,057.16 in the latest trading session, marking a +0.29% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.89%.

The the stock of maker of software that automates companies' technology operations has fallen by 0.65% in the past month, leading the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.

The upcoming earnings release of ServiceNow will be of great interest to investors. The company's earnings report is expected on January 29, 2025. On that day, ServiceNow is projected to report earnings of $3.60 per share, which would represent year-over-year growth of 15.76%. Alongside, our most recent consensus estimate is anticipating revenue of $2.96 billion, indicating a 21.3% upward movement from the same quarter last year.

Any recent changes to analyst estimates for ServiceNow should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. ServiceNow presently features a Zacks Rank of #2 (Buy).

Digging into valuation, ServiceNow currently has a Forward P/E ratio of 64.18. This represents a premium compared to its industry's average Forward P/E of 27.56.

We can also see that NOW currently has a PEG ratio of 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 250+ industries.