ServiceNow stock: buy or sell
Updated on:
May 17th, 2021
1
ServiceNow stock brief
- ServiceNow stock moved up 1.18% to close at $460.33 on the stock market last Friday.
- The stock is configuring an uptrend pattern since last March, when it bottomed at $462.51. This uptrend marked a -0.47% gain
- Mizuho and Oppenheimer published strong positive ratings for ServiceNow last Tuesday, with an average forecast of $600.00
- ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide.
Should I buy ServiceNow stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $NOW stock a buy?
Currently, ServiceNow stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $NOW in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell ServiceNow stock?
When is it time to sell ServiceNow?. Just as when we have to buy shares, determining when is appropiate time to sell is not a random decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed setups are very simple to use and are only applicable for selling shares in your porfolio, not for selling short $NOW stock
As a golden rule, you should not mantain a trade that generates greater losses than those expected upon purchase. The moment to sell shares must always be ruled by the stop-loss (automatic or manual)
Is it time to sell ServiceNow stock?
In the current situation of ServiceNow there is not any eligible sell setup, so ServiceNow stock holders with operations in green can keep their positions
Price broke down below last bottom
ServiceNow ratings
In the last month, 10 brokerage ratings were published for ServiceNow. General sentiment is bullish, with 8 out of 10 posting optimistic outlooks
| Brokerage firm | Rating |
|---|---|
| Apr 19th, 2021 | |
| JMP Securities | |
| Apr 22nd, 2021 | |
| Exane BNP Paribas | Buy |
| Wolfe Research | Buy |
| Apr 28th, 2021 | |
| Wolfe Research | Buy |
| Apr 29th, 2021 | |
| BMO Capital Markets | Buy |
| Needham & Company LLC | |
| May 3rd, 2021 | |
| Robert W. Baird | Neutral |
| May 5th, 2021 | |
| Needham & Company LLC | |
| May 11th, 2021 | |
| Mizuho | |
| Oppenheimer | |
ServiceNow stock analysis
ServiceNow shares started an uptrend last March, and grew an almost flat -0.47%. Rising peaks and troughs can be seen easily on a chart and how price gave very few buy points on the breakouts. Latest pullback was last March, when price bounced at $463.80. Saddly, $NOW could not resume the uptrend after topping at $565.29, and fell crossing its $463.80 support last Thursday
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
Relative strength index
The RSI crossed up the oversold line of 30 last March after just being in the oversold zone for a single day (what can be considered a strength sign). The RSI value last Friday was 34.33
ServiceNow stock price history
ServiceNow went public on Jun 29th, 2012 priced at $23.75 per share1. Since then, NOW stock surged by 1,838.23%, with an average of 229.78% per year. An investment of thousand dollars on Jun 2012 would worth $19,382.32 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for ServiceNow stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are posted every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price target based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new fundamental data by the company, and usually. Again, these predictions are not direct recommendations for small investors and must not be followed blindly.
Averaging all price targets exposed below, the forecasted price for ServiceNow stock is $610.00. ServiceNow closed at $460.33 last Friday, so the target price is predicting an increase by 32.51%.
| Brokerage firm | Price target |
|---|---|
| Apr 19th, 2021 | |
| JMP Securities | $540.00 → $568.00 |
| Apr 22nd, 2021 | |
| Exane BNP Paribas | $680.00 |
| Wolfe Research | Not available |
| Apr 28th, 2021 | |
| Wolfe Research | $675.00 |
| Apr 29th, 2021 | |
| BMO Capital Markets | $590.00 → $575.00 |
| Needham & Company LLC | $595.00 → $591.00 |
| May 3rd, 2021 | |
| Robert W. Baird | Not available |
| May 5th, 2021 | |
| Needham & Company LLC | $595.00 → $591.00 |
| May 11th, 2021 | |
| Mizuho | $610.00 → $590.00 |
| Oppenheimer | $610.00 |
Earnings and financials
In late April, ServiceNow, Inc. ($NOW) reported EPS for that beat Market expectations. Quarterly EPS was $1.52 per share from an estimated $1.34. This Q1 report represents an earnings surprise of 13.43%. On the contrary, reported sales were $1.4 billion, in line with the market forecasts.
This compares to Earnings of $1.05 per share same quarter last year, so posted EPS is an improvement of 44.76%. Sales exploded a 29.98% on an annualized basis in the , from $10.5B to $13.6B last quarter.ServiceNow ($NOW) posts financial report next July. Forecasted for this quarter is $1.21, compared to $1.52 that was reported for Q1.
ServiceNow performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| ServiceNow ($NOW) | -17.90% | -22.20% | -11.60% |
Important:
The opinions published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual scenarios of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for general educational reasons onlyServiceNow summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $461.91 |
| Close | $460.33 |
| Day range | $458.78 - $464.91 |
| Previous close | $454.98 |
| Session gain | 1.18% |
| Average true range | $25.74 |
| 50d mov avg | $505.15 |
| 100d mov avg | $526.92 |
| 200d mov avg | $508.08 |
| Earnings date | July 28th, 2021 |