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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether SERVICENOW INC (NYSE:NOW) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but SERVICENOW INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for NYSE:NOW

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:NOW was assigned a score of 9 for growth:

• The Earnings Per Share has grown by an impressive 34.51% over the past year.
• NOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.92% yearly.
• NOW shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.48%.
• The Revenue has been growing by 28.02% on average over the past years. This is a very strong growth!
• NOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.63% yearly.
• 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 15.24 indicates that NOW is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 15.24, NOW belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
• NOW has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
• The Debt to FCF ratio of NOW (0.44) is better than 78.49% of its industry peers.
• NOW has a Debt/Equity ratio of 0.16. 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.

Profitability Examination for NYSE:NOW

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:NOW, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 7.25%, NOW belongs to the top of the industry, outperforming 81.72% of the companies in the same industry.
• With an excellent Return On Equity value of 14.38%, NOW belongs to the best of the industry, outperforming 84.23% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 8.81%, NOW belongs to the top of the industry, outperforming 84.95% of the companies in the same industry.
• The 3 year average ROIC (4.58%) for NOW is below the current ROIC(8.81%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 12.77%, NOW belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of NOW has grown nicely.
• Looking at the Operating Margin, with a value of 12.04%, NOW belongs to the top of the industry, outperforming 81.36% of the companies in the same industry.
• In the last couple of years the Operating Margin of NOW has grown nicely.
• NOW's Gross Margin of 79.24% is fine compared to the rest of the industry. NOW outperforms 77.78% of its industry peers.

How does the Setup look for NYSE:NOW

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:

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.

Every day, new Strong Growth stocks can be found on ChartMill 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.

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.