ServiceNow Inc. (NYSE:NOW) stock rose more than 4% on Monday, outperforming both the broader market and the Technology sector as investors bought into the software company’s recent recovery despite a risk-off trading session.
The Nasdaq fell 1.43%, while the S&P 500 slipped 0.50%. The Technology sector was down 1.7%, making ServiceNow one of the day’s notable outperformers.
The stock has been rebounding since its April low and continues to build on improving momentum, even as investors rotate away from large-cap technology stocks.
While seven of the 11 S&P sectors traded higher, Energy led the market with a 2.48% gain. Technology ranked last, highlighting the significance of ServiceNow’s advance.
Technical Picture Improves
The stock is trading 10.5% above its 20-day simple moving average of $101.78 and 10% above its 50-day simple moving average of $102.30. Those levels suggest the short-term trend has turned positive.
The longer-term outlook remains mixed. ServiceNow still trades 13.8% below its 200-day simple moving average of $130.45 and remains below the bearish “death cross” that formed in August 2025, when the 50-day moving average fell below the 200-day moving average.
Momentum indicators continue to improve. The MACD remains above its signal line, while a positive histogram suggests buying pressure is strengthening.
Traders are watching resistance near $126.50. A move above that level could reinforce the recovery. On the downside, support sits around $98, where buyers previously stepped in.
Earnings, Analysts And Valuation
ServiceNow is scheduled to report second-quarter results on July 22.
Wall Street expects earnings of 76 cents per share, down from 82 cents a year ago. Revenue is projected to increase to $3.93 billion from $3.21 billion in the prior-year quarter.
The stock trades at about 64.1 times earnings, reflecting a premium valuation relative to many software peers.
Analysts remain broadly bullish. The consensus rating is Buy, with an average price forecast of $137.07, based on 50 analysts. Recent research includes Goldman Sachs lowering its price forecast to $145 while maintaining a Buy rating on July 9, Truist Securities raising its price forecast to $130 while reiterating Buy on July 9, and Guggenheim upgrading the stock to Buy with a $125 price forecast on July 1.
Benzinga Edge View
According to Benzinga Edge, ServiceNow scores highly for Growth at 87.54 but ranks weakly for Momentum at 12.71 and Value at 12.64. Its Quality score stands at a neutral 37.75.
ETF Exposure
ServiceNow is a major holding in several exchange-traded funds, including the Mango Growth ETF (NASDAQ:GARY), the GraniteShares 2x Long NOW Daily ETF (NASDAQ:NOWL) and the Global X Cloud Computing ETF (NASDAQ:CLOU). Large fund flows into or out of these ETFs can influence demand for the stock.
NOW Stock Price Activity: ServiceNow shares were up 4.29% at $112.33 at the time of publication on Monday, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments