SERVICENOW INC (NYSE:NOW) – A Strong Growth Stock Showing a Technical Breakout

SERVICENOW INC (NYSE:NOW) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a bullish chart pattern, making it worth a closer look for investors seeking growth opportunities.

Strong Growth Fundamentals

• Revenue & Earnings Growth: NOW has demonstrated impressive growth, with revenue increasing by 21.01% over the past year and earnings per share (EPS) rising by 23.29%. The company’s five-year average revenue growth stands at 25.99%, well above industry norms.
• Profitability: With a Return on Equity (ROE) of 15.17% and a Profit Margin of 13.41%, NOW outperforms most peers in the software industry. Its Gross Margin of 78.92% also reflects strong pricing power.
• Valuation: While the stock trades at a high P/E ratio of 70.56, this is in line with industry averages, and the company’s growth prospects may justify the premium.

Technical Setup Suggests Upside Potential

• Bullish Trend: Both short-term and long-term trends are positive, with the stock trading above key moving averages.
• Breakout Potential: NOW is currently forming a bull flag pattern, a continuation signal after a strong upward move. Resistance sits near $1,029.90, and a breakout above this level could signal further gains.
• Support Levels: A strong support zone exists between $998.93 and $1,004.36, providing a potential stop-loss area for traders.

For a deeper dive into the fundamentals, review the full fundamental report for NOW. The technical analysis report provides additional insights on price action and key levels.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks that fit this criteria and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.