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

In this article, we'll take a closer look at SERVICENOW INC (NYSE:NOW) as a potential candidate for growth investing. While it's important for investors to conduct their own research, SERVICENOW INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

A Closer Look at Growth for NYSE:NOW

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:NOW scores a 9 out of 10:

• The Earnings Per Share has grown by an impressive 41.90% over the past year.
• The Earnings Per Share has been growing by 33.92% on average over the past years. This is a very strong growth
• NOW shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.82%.
• Measured over the past years, NOW shows a very strong growth in Revenue. The Revenue has been growing by 28.02% on average per year.
• The Earnings Per Share is expected to grow by 19.24% on average over the next years. This is quite good.
• NOW is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.56% yearly.

Health Analysis for NYSE:NOW

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:NOW scores a 7 out of 10:

• NOW has an Altman-Z score of 10.68. This indicates that NOW is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 10.68, NOW belongs to the best of the industry, outperforming 87.64% of the companies in the same industry.
• NOW has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.55, NOW belongs to the top of the industry, outperforming 82.91% 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.
• The current and quick ratio evaluation for NOW is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:NOW, the assigned 8 is a significant indicator of profitability:

• NOW has a Return On Assets of 9.96%. This is amongst the best in the industry. NOW outperforms 92.36% of its industry peers.
• Looking at the Return On Equity, with a value of 22.69%, NOW belongs to the top of the industry, outperforming 93.45% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.19%, NOW belongs to the top of the industry, outperforming 82.55% of the companies in the same industry.
• The 3 year average ROIC (4.58%) for NOW is below the current ROIC(6.19%), indicating increased profibility in the last year.
• NOW has a better Profit Margin (19.30%) than 91.27% of its industry peers.
• NOW's Profit Margin has improved in the last couple of years.
• NOW's Operating Margin of 8.49% is fine compared to the rest of the industry. NOW outperforms 78.55% of its industry peers.
• NOW's Operating Margin has improved in the last couple of years.
• The Gross Margin of NOW (78.59%) is better than 78.55% of its industry peers.

Why is NYSE:NOW a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:NOW this score is currently 8:

NOW has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 778.72, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.