Summary
- ServiceNow (NOW) hits an all-time high, driven by strong technical buy signals, superior momentum, and consistent price appreciation.
- The company automates enterprise IT operations with cloud-based services, boasting significant revenue and earnings growth projections.
- Analysts are bullish with multiple strong buy ratings, citing AI momentum and potential for substantial top-line growth.
- Technical indicators show robust performance, with the stock above key moving averages and a 43.34% gain in the last year.
The Chart of the Day belongs to the IT services company ServiceNow (NOW) as it hits another All-Time High. I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 6/27 the stock gained 11.11%.
ServiceNow, Inc. is a provider of cloud-based services that automate enterprise IT operations. The company provides applications built on its proprietary platform that digitalizes workflow and integrates related business processes. The firm automates and standardizes business processes and consolidates IT across the global enterprise. Applications create a single system for enterprise IT, lowering operational costs. Also, ServiceNow builds custom applications for automating a customer’s unique activities. Has 20,080 employees. Officers and directors own less than 1.0% of stock.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 46.53+ Weighted Alpha
- .98 - 60 month Beta
- 43.34% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 9 new highs and up 6.05% in the last month
- Relative Strength Index 61.90%
- Technical support level at $849.61
- Recently traded at $860.15 with 50 day moving average of $800.86
Fundamental Factors:
- Market Cap $176 billion
- P/E 148.66
- Revenue expected to grow 21.60% this year and another 20.60% next year
- Earnings are estimated to increase 27.90% this year, an additional 19.90% next year and continue to compound at an annual rate of 21.90% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 26 strong buy, 11 buy, 2 hold and 1 under perform opinions on the stock
- Analysts' price targets are between $640 and $950 with a consensus of $872
- Value Line give the stock its average rating of 3 and has price targets between $730 and $1,418 with a mid-point of 1,074 and comments: "Generative AI should drive growth over the long haul. ServiceNow has benefited from strong demand for its AI offerings, including its Now Assist product
- CFRAs MarketScope rates the stock a 5 Star Strong Buy with a price target of $881 and comments: "We maintain our Strong Buy recommendation on NOW on AI momentum and its potential to drive significant top-line growth in the medium term as the company rolls out new GenAI use cases/applications, and leverages its selling ecosystem to push subscription upgrades and product expansions. "
- MorningStar rates the stock an average 3 star rating with Fair Value at $840 and comments:"ServiceNow has been successful so far in executing a classic land-and-expand strategy. First, it built a best-of-breed SaaS solution for IT service management, or ITSM, based on being modular and flexible, having a superior familiar user interface, offering a way to automate a wide variety of workflow processes, and becoming a platform to serve as a single system of record for the IT function within the enterprise."
- 76,360 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
