NYSE:NOW—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

In this article we will dive into SERVICENOW INC (NYSE:NOW) as a possible candidate for growth investing. Investors should always do their own research, but we noticed SERVICENOW INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

How do we evaluate the Growth for NYSE:NOW?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:NOW was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 428.72% over the past year.
• The Earnings Per Share has been growing by 142.56% on average over the past years. This is a very strong growth
• Looking at the last year, NOW shows a very strong growth in Revenue. The Revenue has grown by 23.82%.
• The Revenue has been growing by 28.02% on average over the past years. This is a very strong growth!
• NOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.69% yearly.
• The Revenue is expected to grow by 20.68% on average over the next years. This is a very strong growth

How do we evaluate the Health for NYSE:NOW?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:NOW has achieved a 7 out of 10:

• NOW has an Altman-Z score of 10.57. This indicates that NOW is financially healthy and has little risk of bankruptcy at the moment.
• NOW's Altman-Z score of 10.57 is amongst the best of the industry. NOW outperforms 87.77% of its industry peers.
• The Debt to FCF ratio of NOW is 0.55, which is an excellent value as it means it would take NOW, only 0.55 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.55, NOW belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
• NOW has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
• NOW does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Profitability for NYSE:NOW

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:NOW has earned a 8 out of 10:

• NOW has a Return On Assets of 9.96%. This is amongst the best in the industry. NOW outperforms 92.09% of its industry peers.
• NOW has a better Return On Equity (22.69%) than 92.81% of its industry peers.
• NOW has a better Return On Invested Capital (6.19%) than 83.09% of its industry peers.
• The last Return On Invested Capital (6.19%) for NOW is above the 3 year average (4.58%), which is a sign of increasing profitability.
• NOW has a Profit Margin of 19.30%. This is amongst the best in the industry. NOW outperforms 91.01% of its industry peers.
• In the last couple of years the Profit Margin of NOW has grown nicely.
• With an excellent Operating Margin value of 8.49%, NOW belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
• In the last couple of years the Operating Margin of NOW has grown nicely.
• The Gross Margin of NOW (78.59%) is better than 79.14% of its industry peers.

How do we evaluate the setup for NYSE:NOW?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:NOW is 8:

NOW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 738.89, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of NOW contains the most current fundamental analsysis.

Our latest full technical report of NOW contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.