Is NYSE:NOW suited for growth investing?

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 Louis Navellier growth screen, which makes it worth to investigate a bit more.

Some of the growth metrics of NYSE:NOW highlighted

• SERVICENOW INC exhibits a strong Return on Equity (ROE) of 20.56%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a track record of beating EPS estimates in the last 4 quarters, SERVICENOW INC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
• SERVICENOW INC has demonstrated strong 1-year revenue growth of 21.47%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• SERVICENOW INC has experienced 22.72% q2q revenue growth, indicating a significant sales increase.
• With a favorable trend in its operating margin over the past year, SERVICENOW INC demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The free cash flow (FCF) of SERVICENOW INC has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• SERVICENOW INC has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 46.3% increase. This indicates improving financial performance and the company's effective management of its operations.
• The average next Quarter EPS Estimate for SERVICENOW INC has experienced a 5.76% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• In the most recent financial report, SERVICENOW INC reported a 46.3% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• SERVICENOW INC shows accelerating EPS growth: when comparing the current Q2Q growth of 46.3% to the previous year Q2Q growth of 14.08%, we see the growth rate improving.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to NOW. NOW was compared to 285 industry peers in the Software industry. NOW scores excellent on profitability, but there are some minor concerns on its financial health. NOW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make NOW suitable for growth investing!

Check the latest full fundamental report of NOW for a complete fundamental analysis.

More ideas for growth investing can be found on ChartMill in our Lois Navellier screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.