NYSE:NOW—A High-Growth Stock Gearing Up for Its Next Upward Move.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether SERVICENOW INC (NYSE:NOW) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but SERVICENOW INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Looking at the Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:NOW has received a 9 out of 10:

• NOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.98%, which is quite impressive.
• The Earnings Per Share has been growing by 33.92% on average over the past years. This is a very strong growth
• The Revenue has grown by 24.17% in the past year. This is a very strong growth!
• The Revenue has been growing by 28.02% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, NOW will show a very strong growth in Earnings Per Share. The EPS will grow by 21.63% on average per year.
• NOW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.57% yearly.

A Closer Look at Health for NYSE:NOW

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:NOW has achieved a 6 out of 10:

• An Altman-Z score of 11.77 indicates that NOW is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NOW (11.77) is better than 89.40% of its industry peers.
• The Debt to FCF ratio of NOW is 0.49, which is an excellent value as it means it would take NOW, only 0.49 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 0.49, NOW is doing good in the industry, outperforming 78.80% of the companies in the same industry.
• NOW has a Debt/Equity ratio of 0.17. 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.

Exploring NYSE:NOW's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:NOW has achieved a 8:

• Looking at the Return On Assets, with a value of 6.29%, NOW belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 13.22%, NOW belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
• NOW has a better Return On Invested Capital (7.92%) than 82.69% of its industry peers.
• The 3 year average ROIC (4.58%) for NOW is below the current ROIC(7.92%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 11.51%, NOW belongs to the top of the industry, outperforming 80.92% of the companies in the same industry.
• NOW's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 10.78%, NOW belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
• In the last couple of years the Operating Margin of NOW has grown nicely.
• NOW has a Gross Margin of 79.07%. This is in the better half of the industry: NOW outperforms 77.03% of its industry peers.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:NOW currently has a 8 as setup rating:

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 a support zone below the current price at 831.53, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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.

Keep in mind

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.