Big Money Loving ServiceNow

NOW is a software company that helps companies automate their digital operations. Its primary focus is IT customers, but it offers solutions for customer service, human resources, and security operations as well. NOW’s offerings streamline enterprise business processes, aiming to drive more overall efficiency through an organization.

The company grew its customer base by 15% with AI-centered deals leading the way, according to its most recent earnings figures. It’s also been closing bigger deals, with 14 deals greater than $5 million in net new annual contract value and four deals of more than $10 million. Sales like that have helped NOW generate a three-year per-share revenue growth of 25% and a five-year rate of 25.1%.

It’s no wonder NOW shares are up 21% this year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

ServiceNow Shares in Demand

Institutional volumes reveal plenty. In the last year, NOW has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in NOW shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with ServiceNow.

ServiceNow Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, NOW has strong sales and earnings growth:

• 3-year sales growth rate (+25.7%)
• 3-year sales earnings rate (+184.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +20.1%.

Now it makes sense why the stock has been powering to new heights. NOW has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

ServiceNow has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year, with more potentially on the horizon. The blue bars below show when NOW was a top pick…sending share prices up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

ServiceNow Price Prediction

The NOW rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in NOW at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.