|Bid||252.32 x 900|
|Ask||252.52 x 1000|
|Day's Range||249.02 - 255.11|
|52 Week Range||147.63 - 303.17|
|Beta (3Y Monthly)||1.29|
|PE Ratio (TTM)||1,406.70|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
DXC Technology's (DXC) fiscal second-quarter results reflect strength in digital business. However, weak traditional application services business is a headwind.
Investors studying IPO bases are partly blinded because new issues don't have enough trading history to generate tools like the Relative Price Strength Rating or the Accumulation/Distribution Rating, as compiled in IBD's proprietary research tool, Stock Checkup. Important factors include seeing a shallow correction within the base during normal market conditions, a large increase in price and a close near session highs on the breakout day, and heavy volume on the breakout day and week. ServiceNow, the business software company, went public June 29, 2012, at 18 a share, and met with immediate success as the stock leaped to a close at 24.60 as nearly 11 million shares exchanged hands.
For fresh investing ideas, we suggest taking a cue from Wall Street. Recommendations from the Street’s pros can provide a source of inspiration, as analysts often have in-depth knowledge of the industries they cover. That being said, not all analysts have the same track record, with some demonstrating a much stronger ability to generate returns with their ratings and price targets.Taking this into consideration, we turned to TipRanks’ top rated analyst, Canaccord's Richard Davis. According to TipRanks’ algorithm which calculates the average return of each rating as well as overall success rate, the tech sector analyst was the best performer out of 5,583 total analysts. With an 82% success rate and a 44% average return per rating, it’s clear that his calls demand attention.With this in mind, we wanted to take a closer look at the five-star analyst’s top picks in the software space. Not only does the upside potential of each exceed 20%, but all of the stocks have earned a ‘Strong Buy’ consensus based on all of the ratings published over the last three months. Let’s dive right in.ServiceNow (NOW)ServiceNow is a cloud computing company that wants to make it easier to get work done with its software solutions. Even though Davis expects a rough next quarter or two from NOW, the analyst believes that the tech stock still represents a compelling investment.His bullish thesis lies in part with the company’s commitment to achieve both near and long-term financial targets. Incoming CEO Bill McDermott stated that there hasn’t been a change in demand and activity as a result of macro conditions, and thus the company is still on track to meet its goals. Not to mention the public sector has been welcoming the cloud with open arms. In its most recent quarter, NOW signed thirteen contracts that have average contract value of more than $1 million with the U.S. federal government. This is up from the five deals it signed one year ago.While acknowledging the concerns surrounding employee attribution, the five-star analyst calls fears “overblown.” Out of NOW’s top 100 sales representatives, the company has only lost three. It should also be noted that company-wide employee retention rates rival that of other industry leaders.Based on all of the above factors, Davis tells investors to stay onboard. The analyst adds, “If you don’t own NOW, you should be happy because you just walked into the store and found your favorite item on an unexpected sale – we’d use what is likely to be an up and down stock price to build out a full position through year end”. Bearing this in mind, he kept his Buy rating while lowering the price target from $315 to $285. Even with this reduction, Davis sees 18% upside potential in store.In general, other Wall Street analysts take a bullish approach when it comes to NOW. 16 Buy ratings compared to 2 Holds assigned in the last three months give it a ‘Strong Buy’ analyst consensus. Additionally, its $300 average price target puts the upside potential at 21%. (See ServiceNow stock analysis on TipRanks)Smartsheet (SMAR)With Davis calling Smartsheet “one of the best positioned and executing firms that we follow," this software company is definitely on our radar.Smartsheet offers its customers a software platform for the workplace, with this solution allowing teams to work more effectively and improve overall outcomes. While the company provides solid products, the project management space is overcrowded with competitors. That being said, Davis highlights SMAR as a standout based on the fact that its software does exactly what it’s supposed to do.“Smartsheet makes the buying, pricing and expansion process comfortable. When you combine passionate customers with technical prowess and pleasant buying experience, you have the ingredients for a long runway of growth,” the analyst commented.Davis argues that the key to successfully navigating a competitive industry is to continue to innovate, get scale as well as meet the needs of current customers, all three of which the analyst says SMAR is doing. The company has kept customers excited by adding new features including conditional logic enhancements, cut and copy widgets, new ways to filter, multiple select drop down lists and several others. Based on the company’s 134% customer retention, its users are liking what they’re seeing.Like Davis, the rest of the Street has high hopes for SMAR. With 8 Buy ratings and 1 Hold received in the last three months, the message is clear: the software stock is a "Strong Buy." At an average price target of $50.44, the potential twelve month gain lands at 24%. (See Smartsheet stock analysis on TipRanks)Upland Software (UPLD)While it’s yet another player in the workplace software space, Davis thinks Upland stands to become a disruptrive player in the sector thanks to its recent acquisition.On October 6, UPLD announced that it was set to buy Altify for $84 million. Altify is a customer revenue optimization platform that is built natively on Salesforce. It was designed to improve sales execution by solving account management problems and by meeting sales process optimization needs. According to the analyst, Altify complements UPLD’s existing product offerings as well as provides a new customer base for the company to sell to.With this purchase representing UPLD’s fifth acquisition in just the last six months, the company could see major gains driven by these expansion efforts. However, all of this M&A activity does pose risk in terms of integration. Nonetheless, the five-star analyst cites the company’s strong management team and well-practiced method for executing integrations as mitigating some of these concerns.“If we assume that investors are willing to pay a mid-teens EBITDA multiple for Upland's combination of gradually improving organic growth, reliable and accretive M&A, and high margins, we continue to believe that the stock should push through $50 in the next year,” Davis explained.As the current share price is $38.04, Davis’ price target of $55 suggests shares could climb 45% higher over the next twelve months.With only bullish calls issued in the last three months, the word on the Street is that UPLD is a "Strong Buy." Adding to the good news, its $55 average price target indicates the highest upside potential on our list, 43.53% to be exact. (See Upland Software stock analysis on TipRanks)To find good ideas for tech stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy tool, a newly launched feature that unites all of TipRanks’ equity insights.
Booming cloud computing and Internet companies like ServiceNow, Facebook and LinkedIn are staffing up on engineers in a big way — while other big-name tech employers are actually shedding more engineers than they're hiring.
eBay (EBAY) shares are trading 7.8% lower in pre-market today. In contrast, ServiceNow (NOW) stock has gained 7% in pre-market trading.
Shares of enterprise IT service provider ServiceNow were rising sharply Thursday after the company reported third-quarter results that were ahead of expectations, the same week it named Bill McDermott as CEO. "We delivered another strong quarter, continuing our focus on driving customer success and expanding our footprint across 75% of the Fortune 500," said current CEO John Donahoe. In an interview with Bloomberg, McDermott said he wants to build a global juggernaut with ServiceNow.
The technical signs for the cloud automation company indicate sellers of its stock have been more aggressive in the last few weeks.
(Bloomberg) -- ServiceNow Inc. incoming Chief Executive Officer Bill McDermott promised to transform the growing software maker into a “global juggernaut” as he works to convince investors he’s the right man for the job.“I wanted at this stage in my career a company that was in the early stage of its growth pattern and help them go to the next phase, to truly become one of the most admired software brands in the world,” McDermott, who stepped down earlier this month as CEO of German software giant SAP SE, said Wednesday in an interview. “The company is on a roll. I’m going to fortify that and continue that. The experience of what I know and I’ve seen will be incredibly helpful to ServiceNow. This company will be a global juggernaut.”ServiceNow has long promised to organize tedious parts of office life, like setting up a help desk for IT operations and bringing on board new employees. The company has expanded into new markets, such as human resources, to maintain an annual sales growth rate of at least 35%, which it has achieved since going public in 2012. McDermott’s appointment Tuesday concerned some investors and analysts who highlighted that he hasn’t led “growth companies,” having worked at Xerox and spent about a decade as the first American CEO of Walldorf, Germany-based SAP.McDermott dismissed the criticism, saying ServiceNow is glad to have a “street fighter” like him in its corner.“If someone says Bill McDermott is best known for running large, global, powerhouse companies and they say ‘Is he the right person to lead ServiceNow because it’s not as large,’ I would say, I was completely unaware of ServiceNow’s intention to stay small,” he said. “I’m a leader. I lead organizations and establish visions. At the same time, I’m conforming to ServiceNow’s culture. I think that’s why I am the perfect person.”McDermott added that continuity is important and he sees himself as similar to John Donahoe, ServiceNow’s current CEO, who is stepping down in January to run Nike Inc. McDermott also said he wants all of ServiceNow’s current executives to remain in place when he takes the top job.McDermott said he has interviewed a pool of candidates in the search for ServiceNow’s next chief financial officer and was looking for a candidate who could fit the company’s culture and boost its operating margins and profit. “I think we have found such a person,” he said. The software maker may announce a pick before Thanksgiving in late November, he said.The Santa Clara, California-based company projected subscription revenue that topped Wall Street estimates Wednesday. Sales from subscriptions will be $897 million to $902 million in the current period, ServiceNow said in a statement. Analysts on average expected subscription revenue of $897.7 million, according to data compiled by Bloomberg. That would represent 35% growth compared with a year earlier.The company also reported adjusted profit of 99 cents per share in the period that ended Sept. 30, above analyst estimates of 89 cents.The stock climbed about 4% in extended trading after closing at $220.01 in New York Wednesday. The shares have gained 24% this year.McDermott said that he would stick to ServiceNow’s goal of reaching $10 billion in annual revenue by an unspecified time.“Very simply, I completely buy in, stand behind it, and I’m looking forward to achieving it,” McDermott said on a conference call with analysts.While McDermott is known for his penchant for large acquisitions, such as SAP’s almost $8 billion purchase of Qualtrics International Inc., he said in an interview ServiceNow still had a lot of room for organic growth, which is his preference.“There is no need at this time for large scale M&A maneuvers,” he said.(Updates with comments from earnings call in the 11th paragraph.)To contact the reporter on this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
ServiceNow (NOW) delivered earnings and revenue surprises of 11.24% and 0.01%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
ServiceNow Inc.'s stock was up 7% in after-hours trading Wednesday after the cloud-services company reported solid third-quarter results and introduced its new chief executive. ServiceNow reported earnings of $1.03 a share. Revenue soared 32% to $885.8 million. Analysts surveyed by FactSet had expected earnings of 99 cents a share on revenue of $886 million. Following its results, the company held a conference call with Bill McDermott, the former SAP SE CEO who is joining the company by the end of the year. McDermott succeeds John Donahoe, who was named Nike Inc. CEO on Tuesday. ServiceNow shares are up 24% this year. The S&P 500 index has gained 20% this year.
ServiceNow will likely make more acquisitions under new CEO Bill McDermott given his track record at software giant SAP, analysts say. ServiceNow stock fell on Wednesday amid a change in CEOs.
It began Monday when Adidas AG (ADR) (OTC: ADDYY) CMO Eric Liedtke announced he was stepping down. Liedtke was largely responsible for Adidas’ resurgence in North America and was presumably the company’s next pick for CEO. On Tuesday, more bombshells were dropped when Under Armour Inc (NYSE: UAA) CEO and Founder Kevin Plank announced he was resigning, followed by Nike Inc (NYSE: NKE) CEO Mark Parker resignation just a few hours later.
When the music stopped Tuesday afternoon, the CEOs of three large public companies were sitting in new seats. (NKE) (ticker: NKE) announced Tuesday afternoon that Chief Executive Mark Parker would step down by the end of the year, to be replaced by (NOW) (NOW) CEO John Donahoe. Just minutes later, ServiceNow said that its new CEO will be Bill McDermott, who stepped down from the CEO role at (SAP) (SAP) less than two weeks ago.