Company Performance - ServiceNow (NOW) closed at $153.38, reflecting a significant drop of -80.4% from the previous day, underperforming the S&P 500's daily gain of 0.79% [1] - The stock has decreased by 4.17% over the past month, contrasting with the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 0.87% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $4.35, representing an 18.53% increase year-over-year [2] - Revenue is projected at $3.52 billion, which is a 19.19% rise compared to the same quarter last year [2] Full Year Projections - For the full year, analysts anticipate earnings of $17.31 per share and revenue of $13.23 billion, indicating increases of +24.35% and +20.49% respectively from the previous year [3] - Recent changes to analyst estimates are crucial as they reflect the evolving business trends, with positive revisions indicating a favorable business outlook [3] Valuation Metrics - ServiceNow has a Forward P/E ratio of 45.21, which is significantly higher than the industry average Forward P/E of 15.91 [5] - The company also has a PEG ratio of 1.85, aligning with the industry average, indicating a balance between price and expected earnings growth [6] Industry Context - The Computers - IT Services industry, which includes ServiceNow, holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [6] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1, suggesting a favorable environment for companies within this sector [7]

Core Viewpoint - ServiceNow's stock performance shows a slight increase, with upcoming earnings expected to reflect significant growth in both EPS and revenue [1][3][4]. Company Performance - ServiceNow's stock closed at $1,012.74, up 0.18% from the previous day, outperforming the S&P 500's gain of 0.01% [1]. - Over the past month, ServiceNow shares increased by 4.73%, lagging behind the Computer and Technology sector's gain of 7.95% and the S&P 500's gain of 5.2% [2]. Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $3.53, representing a 12.78% increase year-over-year, with revenue expected to reach $3.12 billion, up 18.79% from the prior year [3]. - For the full year, analysts project earnings of $16.51 per share and revenue of $13.01 billion, indicating increases of 18.61% and 18.42%, respectively, compared to last year [4]. Analyst Sentiment - Recent changes in analyst estimates for ServiceNow are crucial, as positive revisions indicate optimism regarding the company's business and profitability [5]. - The Zacks Rank system, which reflects these estimate changes, currently rates ServiceNow as 3 (Hold), with a recent consensus EPS projection increase of 0.27% [7]. Valuation Metrics - ServiceNow is trading at a Forward P/E ratio of 61.23, significantly higher than the industry average of 19.74 [8]. - The company has a PEG ratio of 2.58, compared to the industry average PEG ratio of 2.2, indicating a premium valuation relative to projected earnings growth [8]. Industry Context - The Computers - IT Services industry, which includes ServiceNow, ranks in the top 26% of all industries, according to the Zacks Industry Rank [9].