SERVICENOW INC (NYSE:NOW) – A Strong Contender for Growth Investors Following Minervini’s Strategy

SERVICENOW INC (NYSE:NOW) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s trend-following strategy. The company’s strong technical setup and accelerating fundamentals make it a compelling candidate for investors seeking growth opportunities.

Why NOW Fits the Minervini Trend Template

The Minervini Trend Template is designed to identify stocks in strong uptrends with favorable risk/reward setups. NOW meets these criteria with the following technical strengths:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($981.66), 150-day ($978.46), and 200-day ($968.50) moving averages, confirming a bullish trend.
• Rising Moving Averages: Both the 150-day and 200-day MAs are trending upward, reinforcing long-term strength.
• Relative Strength: NOW has a ChartMill Relative Strength (CRS) score of 87.18, indicating it outperforms 87% of the market.
• Price Near 52-Week High: The stock is within 14% of its 52-week high ($1,198.09), showing strong momentum.
• Bull Flag Pattern: The technical report highlights a bull flag formation, suggesting a potential continuation of the uptrend.

High Growth Fundamentals

Beyond technicals, NOW exhibits strong growth metrics that appeal to momentum investors:

• Earnings Growth:
  • EPS grew 23.3% year-over-year (TTM).
  • Quarterly EPS growth accelerated, with the latest quarter up 18.5% YoY.
• Revenue Expansion:
  • Revenue increased 21% YoY (TTM).
  • Quarterly sales growth remained robust at 18.6%.
• Profit Margins:
  • Latest quarter profit margin improved to 14.9%, up from 13.0% in the prior quarter.
• Free Cash Flow Growth:
  • Free cash flow per share surged 69.5% YoY, reflecting strong operational efficiency.

Technical Outlook & Trade Setup

The ChartMill technical report assigns NOW a rating of 9/10, citing its strong trend and consolidation pattern. Key takeaways:

• Support Levels: Strong support exists near $1,005, providing a logical stop-loss zone.
• Resistance: A breakout above $1,040 could signal further upside.
• Setup Quality: The stock scores 7/10 on setup quality, indicating a favorable entry point after recent consolidation.

For a deeper analysis, review the full technical report.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

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