Why NYSE:NOW is Poised for High Growth.

Our stock screener has spotted SERVICENOW INC (NYSE:NOW) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:NOW.

Technical Analysis Observations

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.

Overall NOW gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, NOW is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, NOW did better than 89% of all other stocks. On top of that, NOW also shows a nice and consistent pattern of rising prices.
• NOW is part of the Software industry. There are 279 other stocks in this industry. NOW outperforms 75% 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.
• NOW is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:NOW is 8:

Besides having an excellent technical rating, NOW also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 1028.66, 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.

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), SERVICENOW INC highlights its ability to generate increasing profitability, showcasing a 27.4% growth.
• With impressive quarter-to-quarter (Q2Q) revenue growth of 22.25%, SERVICENOW INC showcases its ability to generate increased sales and revenue. This growth indicates the company's strong customer demand and its effective business strategies.
• Over the past 3 years, SERVICENOW INC has demonstrated 32.21% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• SERVICENOW INC has achieved significant 1-year revenue growth of 23.48%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• 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
• SERVICENOW INC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• SERVICENOW INC has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• SERVICENOW INC has a healthy Return on Equity(ROE) of 14.38%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• Maintaining a Debt-to-Equity ratio of 0.16, SERVICENOW INC demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• SERVICENOW INC has consistently exceeded EPS estimates in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• SERVICENOW INC has exhibited strong Relative Strength(RS) in recent periods, with a current 89.64 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. SERVICENOW INC shows promising potential for continued price momentum.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

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.