Why NYSE:NOW qualifies as a high growth stock.

SERVICENOW INC (NYSE:NOW) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:NOW.

Insights from Technical Analysis

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, NOW scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, NOW has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that NOW is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by NOW over the past year are nicely spread over this period.
• NOW is part of the Software industry. There are 282 other stocks in this industry. NOW outperforms 74% of them.
• NOW is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month NOW has a been trading in the 863.24 - 979.78 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

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

Why is NYSE:NOW a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:NOW currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

NOW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 928.21, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Why NYSE:NOW may be interesting for high growth investors.

• SERVICENOW INC has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 27.4% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• The quarter-to-quarter (Q2Q) revenue growth of 22.25% of SERVICENOW INC has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• Over the past 3 years, SERVICENOW INC has demonstrated 32.21% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The 1-year revenue growth of SERVICENOW INC (23.48%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• In the most recent financial report, SERVICENOW INC reported a 27.4% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• 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.
• The Return on Equity(ROE) of SERVICENOW INC is 14.38%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a current Debt-to-Equity ratio at 0.16, SERVICENOW INC showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• 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.
• The Relative Strength (RS) of SERVICENOW INC has consistently been strong, with a current 88.48 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. SERVICENOW INC demonstrates promising potential for sustained price momentum.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

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.