NOW

ServiceNow Inc. (NOW) closed at $100.74 as of 2026-02-02, trading 27.9% below its 200-week moving average of $139.74. This places NOW in the extreme value zone. The stock is currently moving closer to the line, down from -16.3% last week. With a 14-week RSI of 14, NOW is in oversold territory.

Over the past 662 weeks of data, NOW has crossed below its 200-week moving average 5 times. On average, these episodes lasted 6 weeks. Historically, investors who bought NOW at the start of these episodes saw an average one-year return of +64.3%.

With a market cap of $106.3 billion, NOW is a large-cap stock. The company generates a free cash flow yield of 4.7%. Return on equity stands at 15.5%, a solid level. The stock trades at 8.1x book value.

Share count has increased 3.2% over three years, indicating dilution. NOW passes our Buffett quality screen: high return on equity, low debt, and positive free cash flow.

Over the past 12.8 years, a hypothetical investment of $100 in NOW would have grown to $1247, compared to $537 for the S&P 500. That represents an annualized return of 21.9% vs 14.1% for the index — confirming NOW as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been growing at a 27.8% compound annual rate, with 4 consecutive years of positive cash generation. A business generating more cash every year while trading below its 200-week moving average is exactly the kind of disconnect value investors look for.