ServiceNow stock has generated impressive returns despite the recent pullback in the share price. The stock fell 8% in 2016 and rose 69% in 2017. Since the beginning of 2018, the stock has gained ~31% despite a 13% decline in October.
ServiceNow stock has gained 37% in the last 12 months. The stock has risen 111% in the last three years and close to 214% in the last five years.
Of the 34 analysts tracking ServiceNow, 30 recommended a “buy,” four recommended a “hold,” and none of the analysts recommended a “sell.” Analysts’ 12-month average target price for ServiceNow is $209.52, while the median estimate is $210. ServiceNow is trading at a discount of 23% to analysts’ median estimate.
Analysts think that the stock is a good “buy” due to its strong revenue growth and expanding bottom line. The company’s sales are estimated to rise 34% in 2018 and 29% in 2019.
ServiceNow’s EPS might grow 96% in 2018, 35% in 2019, and at a compound annual growth rate of 52% over the next five years.
On October 24, ServiceNow closed the trading day at $170.21. Based on that price, the stock was trading as follows:
- 8.6% below its 100-day moving average of $186.32
- 10% below its 50-day moving average of $189.51
- 8% below its 20-day moving average of $184.94
MACD and RSI
ServiceNow’s 14-day MACD (moving average convergence divergence) is -4.26. A stock’s MACD is the difference between its short-term and long-term moving averages. ServiceNow’s negative MACD score indicates a downward trading trend.
ServiceNow has a 14-day RSI (relative strength index) score of 38, which shows that the stock is trading closer to the “oversold” territory. An RSI score above 70 indicates that a stock has been overbought, while an RSI score below 30 indicates that a stock has been oversold.