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Top Stock Picks for Week of May 29, 2023

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ServiceNow Inc. (NOW - Free Report) provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. ServiceNow shares have outperformed the industry in the year-to-date period. It has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to shift their infrastructure to cloud, the company is poised to boost uptake of its Now platform. It had 1,682 total customers with more than $1 million in annual contract value at the end of the first quarter. NOW’s new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — is helping it win new customers. This is driving subscription revenues. Strategic alliances with the likes of Microsoft remain tailwinds. ServiceNow has a strong balance sheet with ample liquidity position. With a #1 (Strong Buy) ranking and positive trend in earnings estimate revisions, ServiceNow should be on investors' shortlist.

NOVA LTD (NVMI - Free Report) is a provider of metrology solutions for advanced process control used in semiconductor manufacturing. The company's product portfolio combines hardware and cutting-edge software. The Zacks Consensus Estimate for NVMI's full-year earnings has moved  higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Looking at NVMI's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 higher compared to none lower for the current fiscal year. Also, NVMI recently surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher. Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on NVMI for more gains in the near future.

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