SERVICENOW INC (NYSE:NOW) – A Strong Growth Stock with a Bullish Technical Setup

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 promising chart pattern, making it worth a closer look for growth-oriented investors.

Strong Growth Fundamentals

• Revenue & Earnings Growth: NOW has delivered impressive revenue growth of 21.01% over the past year, with earnings per share (EPS) increasing by 23.29%. The company’s five-year average revenue growth stands at 25.99%, well above industry norms.
• Profitability: The company scores an 8/10 in profitability, with strong margins—operating margin at 12.93% and gross margin at 78.92%, outperforming most peers.
• Financial Health: NOW maintains a solid balance sheet, reflected in a 7/10 health rating. Its Altman-Z score of 12.62 indicates low bankruptcy risk, and debt levels are manageable.

Technical Setup Suggests Opportunity

• Bull Flag Pattern: The stock is currently forming a bull flag, a continuation pattern often seen after a strong upward move. This suggests potential for further gains if the breakout holds.
• Support & Resistance Levels: Key support sits near $988.65, while resistance lies around $1019.31. A move above resistance could signal a new uptrend.
• Relative Strength: NOW has outperformed 89% of all stocks and 79% of software industry peers over the past year, indicating strong momentum.

For a deeper dive, review the full fundamental analysis and technical analysis.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.