|Bid||253.25 x 1100|
|Ask||299.93 x 800|
|Day's Range||262.28 - 267.95|
|52 Week Range||147.63 - 303.17|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||17,642.67|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||317.09|
The acquisition of Syscom is expected to boost DXC Technology's (DXC) footing in Norway by aiding and accelerating the digital transformation journey of Norwegian clients.
Stifel analyst Tom Roderick raised his rating on the provider of software for IT service management to Buy from Hold. He raised his target for the stock’s price to $320, from $290.
ServiceNow’s “The Employee Experience Imperative” Report, which studies the service experience at work, reveals that employee enthusiasm for work peaks at the start of a new job, but wanes by 22% shortly thereafter. Where are employers missing the mark?
DXC Technology's (DXC) fiscal first-quarter results benefit from strength in digital business. However, weak traditional application services business is a headwind.
Microsoft (NASDAQ:MSFT) stock has dropped recently as the stock market has tumbled on interest rate and trade-war concerns. MSFT stock, like the the S&P 500, presently trades about 4% off of its all time highs.Source: Shutterstock The reality of Microsoft stock is that, if the market keeps dropping on trade and interest-rate concerns, so will MSFT stock.MSFT is not immune to these market headwinds. The company's double-digit-percentage revenue growth rate is somewhat reliant upon healthy macro economic conditions, and those conditions are deteriorating because of rising geopolitical tensions and trade uncertainty.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cyclical Stocks to Buy (or Sell) Now Meanwhile, MSFT stock is also somewhat reliant upon rates staying lower for longer in order to support its rich valuation, and investors are unsure as to whether or not rates will stay lower for longer.Thus, if the market keeps dropping on interest rate and trade concerns, MSFT stock will keep dropping, too, no matter what Microsoft news is reported.But it will drop a lot less than other tech and growth stocks because. relative to other tech and growth stocks, Microsoft stock is significantly less exposed to interest-rate and trade headwinds. That's because the valuation of MSFT stock isn't that rich, nor is its business that dependent on favorable economic conditions.Consequently, for investors who are looking for safety amid the recent market turmoil but also want growth, MSFT seems like the perfect stock to buy. Microsoft Stock Isn't Immune, But It's Partially ShieldedMicrosoft stock is not immune to interest rate and trade headwinds. But it is partially shielded, and this partial protection makes MSFT stock an attractive, "safe tech stock" to buy in turbulent times.On the trade front, MSFT is partially shielded from trade headwinds because its core business is supported by non-cyclical adoption tailwinds.Specifically, Microsoft's business is all about the cloud today. The company is capitalizing on the non-cyclical pivot from on-premise solutions to cloud solutions.This pivot may slow somewhat as global economic conditions deteriorate and as enterprises pull back on IT spending and investment.But the pivot won't stop. Instead, enterprises will continue to shift to the cloud.The pace of the transition could even increase if the economy slows because cloud solutions provide significant cost savings relative to on-premise solutions.As a result, Microsoft's business won't materially slow as a result of escalating trade headwinds. Instead, its business should remain largely steady and stable.On the interest rate front, MSFT stock is partially shielded because its valuation isn't that rich relative to other tech/growth stocks. MSFT stock trades at 25 times analysts' average forward earnings estimate.That's rich. But it's not that rich. Other big cloud stocks - like Adobe (NASDAQ:ADBE), Salesforce (NYSE:CRM), ServiceNow (NASDAQ:NOW), and Workday (NASDAQ:WDAY) - all trade at over 35 times analysts' average forward earnings estimate.Thus, if rates do creep higher, Microsoft stock won't be pressured as much as other big-name tech stocks.For these two reasons, MSFT stock is a relatively good buy in turbulent times. Indeed, this scenario is already playing out. MSFT stock is presently only 5% off its recent highs. By contrast, every FANG stock is in correction territory. This relative outperformance of MSFT stock will persist. The Long-Term Outlook of MSFT Stock Remains CompellingThe long-term bull thesis on Microsoft stock remains compelling, even amid recent market headwinds.As stated earlier, Microsoft's core cloud businesses are supported by non-cyclical cloud adoption tailwinds. These tailwinds may slow somewhat in the face of global economic uncertainty. Or they may accelerate, as enterprises look to cut costs as times get tough. But these tailwinds won't die. Only 20% of enterprise workloads are in the cloud today. Over time, that number will rise towards 100%. Thus, MSFT can easily sustain double-digit-percentage revenue growth for the next several years.MSFT's gross margins will continue to rise as its cloud businesses, particularly Azure, grow. Double-digit-percentage revenue growth should also be enough to increase its profitability. Share buybacks will also be in play.That combination should produce roughly 15% EPS growth. Reasonably speaking, then, Microsoft's EPS could reach $12 by fiscal 2026. Based on a forward PE multiple of 20, which is average for growth stocks, that equates to a fiscal 2025 price target of $240. Discounted back by 10% per year, we arrive at a fiscal 2020 price target of roughly $150.Thus,MSFT stock can rise meaningfully both over the next 12 months and the next five years. The Bottom Line on MSFT StockThings are getting choppy in the stock market right now, and as they do get choppy, tech and growth stocks will get hit extra hard because they have ample exposure to trade and interest-rate headwinds.But, relative to that tech and growth group, Microsoft stock will outperform in turbulent times because it has less-than-average exposure to the aforementioned headwinds. As a result, for investors looking to stick with growth but also seeking some stability amid the recent volatility, MSFT stock looks like a good choice.As of this writing, Luke Lango was long MSFT and ADBE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cyclical Stocks to Buy (or Sell) Now * 7 Biotech ETFs That Should Remain Healthy * 7 of the Hottest AI Stocks to Buy Now The post Why Microsoft Stock Is a Relatively Safe Tech Stock to Buy appeared first on InvestorPlace.
The best mutual funds have invested over $100 million each in Microsoft, Yeti, Service Now, and PayPal. See what else they've been buying.
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
A wave of automation is coming over the next few years- so it pays to be prepared. That’s according to a new report from RBC Capital which imagines what the world will look like in 2025. Specifically, the report takes a deep dive into RPA, or robotic process automation. As the name suggests, RPA refers to the automation or augmentation of manual repetitive tasks to improve user productivity.“We believe the Robotic Process Automation (RPA) market is one of the most exciting areas of software given its disruptive nature, high value proposition, evolving capabilities, and the size of the addressable market” cheers the firm. Indeed, IDC (International Data Corp) describes the market as <$1B in size in 2018 growing to >$3.5B in 2022 (i.e. a CAGR of ~50%). Looking out to the futureRPA solutions are currently best suited to repetitive, stable tasks carried out with high frequency. Common use cases include invoice processing, records management, customer support, and data management. However, this is just the beginning. The promise of future RPA software is not only to automate business processes but to improve them. RPA combined with AI will be able to address sophisticated processes. For example, RBC Capital writes “Vendors are working toward cognitive, AI-infused bots, which they believe can one day reformulate current process rules into more accurate and consistent algorithms.” As the technology matures, RBC believes RPA use will rapidly expand with vastly improved time to value, lower risk and minimal IT support.While key RPA players are not US-listed (i.e. UiPath, Automation Anywhere and Blue Prism (LON:PRSM)), there are still a handful of US names primed to gain from this lucrative opportunity. Here we take a closer look at RBC Capital’s highlighted stocks. What’s more, as you will see below, all five of these stocks score a ‘Strong Buy’ Street consensus based on all ratings from the last three months: 1\. Verint Systems (VRNT)New York-based analytics company Verint Systems sells software and hardware products for customer engagement, security, and business intelligence. VRNT introduced its own RPA solution in 2016. The company uses patented visual recognition technologies in a LCNC (low-code/ no-code) development environment, which doesn't require integration or programming to work with other applications. Plus Verint also offers a web-based dashboard to manage and monitor bots. “Verint’s RPA capabilities are a component of its Actionable Intelligence platform, where management believes that increasing the pace of automation and cloud innovation can further differentiate Verint as the vendor of choice in its market” says RBC Capital. Overall Verint has a 100% Street support right now. Five analysts have recently published buy ratings on the stock, with an average price target of $73 (25% upside potential). In particular, JP Morgan's Paul Coster recently adding the name to his firm's Analyst Focus List as a top value idea. He hiked his price target to $78 from $74 and described VRNT as "significantly undervalued" relative to peers. That's despite shares soaring 37% year-to-date. 2\. ServiceNow (NOW)ServiceNow claims to make the world of work, work better for people. It helps companies digitize workflows to unlock productivity.NOW is among cloud providers including Salesforce (CRM) and Amazon (AMZN) that are creating new automation solutions with networked platforms for virtual business processes. “ServiceNow’ s UI and Table API can be accessed by RPA tools through its connectors and can be used in conjunction with RPA tools to build a unified platform for enterprise workflows” points out RBC Capital.Meanwhile shares are up 62% year-to-date. Five-star RBC Capital analyst Matthew Hedberg calls NOW one of his Top Pick stocks. Following a strong Q2 earnings report, the analyst wrote “ServiceNow remains a favorite idea given best-in-class unit economics, above-average growth, a lack of competition, expanding use cases, and FCF leverage.”In total, 19 out of 21 polled analysts are bullish on NOW stock. The average analyst price target of $316 suggests 9% upside potential for the coming months. 3\. Salesforce (CRM)Cloud-based software giant Salesforce calls itself the number 1 customer relationship platform. The company currently uses RPA technology partnerships to supplement its own processes rather than as part of its product offerings. However, CRM has outlined its commitment to automation rich solutions within the Einstein platform which will be similar to RPA. These solutions are designed to augment and support the company’s AI-powered CRM offerings. “Salesforce sees the strategic deployment of Einstein as a fundamental re-evaluation of a business, with RPA and AI as fundamental building blocks of a larger digital automation architecture” explains RBC Capital. The stock has an overwhelmingly bullish outlook from the Street right now. Out of 24 analysts covering the stock, only one is staying on the sidelines. With an average analyst price target of $184, analysts (on average) are predicting 15% upside potential from current levels. Year-to-date the stock has gained 17%. "Based on healthy demand fundamentals and a compelling risk-reward, we would be aggressive buyers of CRM with 14% upside to our $180 base-case PT and 36% upside to our bull-case of $215" enthused KeyBanc analyst Brent Bracelin after meeting Salesforce customers and partners. 4\. Microsoft (MSFT)Microsoft scores its place on the RBC list thanks to its recent investment in Flow. This is a trigger-based automated workflow tool that integrates with MSFT’s Power Platform and puts the company firmly on the Cloud automation map.“Flow and the Power platform position the company to provide enterprise functionality comparable to RPA, with Power BI providing an analytics layer and PowerApps as the LCNC developer platform” says RBC Capital. With connectors to every Microsoft application with a SaaS interface, as well as other platforms like Gmail and DropBox, Flow is designed to help users work more efficiently across apps. Looking ahead, RBC also believes that Flow may open the door for Microsoft to delve more deeply into the process automation market.Over the last three months, 22 analysts have published buy ratings on MSFT stock. That’s versus just 1 hold rating and 1 sell rating. We can also see that the average price target of $154 translates into upside potential of 9%. RBC’s Hedberg significantly boosted his MSFT price target on July 24 from $136 to $153. He made the call following Microsoft's stellar earnings report. “Larger investments to win larger stakes” cheered Hedberg, referring to the company’s longer duration, larger contracts for its Azure cloud platform. 5\. Pegasystems (PEGA)Last but not least comes Pegasystems, a leading provider of BPM (business process management) and CRM applications. It has a heavy skew towards B2C verticals like financial services, insurance, telecoms, healthcare, and the public sector. Most notably Pega systems’ acquisition of original RPA vendor OpenSpan in early 2016 formally added RPA to its CSR-focused automation solutions. “Pega sees its value in customized process design, where automation robotics provide a first level of efficiency and are just one tool among many for building an end-to-end customer engagement suite” writes RBC Capital.The company is already a technology partner to most leading RPA C&SI consultancies and IT service providers, including Deloitte, KPMG, Accenture, and Cognizant. And it strives to be among the top 2 vendors in additional digital transformation categories like digital process automation, real-time decisions/AI, and customer engagement.Only three analysts cover PEGA right now, but all three rate the stock a ‘buy.’ Their average price target works out at $84 (7% upside potential). That’s with shares exploding 65% year-to-date. Discover the latest-ratings from top-performing analysts here
Shares of Shopify (NASDAQ:SHOP) continue to move inexorably higher. SHOP stock is up nearly 200 points, or 144%, so far this year. The seemingly insatiable demand for anything online shopping related has pushed Shopify to unbelievable heights. All good things must come to an end, however. Look for the rather ridiculous rally in SHOP to cool after earnings. Click to EnlargeCertainly SHOP stock is not cheap on any fundamental metric. The TTM P/E ratio is over 800, but P/E ratios can be deceiving for newer companies. Price to sales, a much cleaner look, is a better way to look at valuations. It is now at the highest multiple ever for SHOP with a reading over 30! You can see how the P/S multiple has expanded dramatically as the stock moved higher. This multiple expansion is the main impetus behind the recent red-hot rally. Any hint of disappointment will take the multiple- and the stock price- lower.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Click to EnlargeSHOP stock is looking a little tired from a technical take. Shopify is having difficulty breaking through overhead resistance at the $340 area, having failed now on four attempts. 9 day RSI continues to deteriorate with a series of lower highs. MACD is poised to generate a sell signal on any further weakness. Momentum is clearly waning. SHOP is also trading at a premium to the 20 day moving average which has led to pullbacks in the past.SHOP is due to report earnings on August 1 with consensus of 3 cents EPS on revenue of $350 million. The whisper number, or what analysts really expect, is for 7 cents in earnings. SHOP stock now has a market cap nearing $33 billion, so revenues of just $350 million always make me question the valuation and expected growth rates at such extremes. I think it will definitely be a case of sell the news in SHOP after earnings.One only needs to look at the recent post earnings price reaction of fellow competitor ServiceNow (NASDAQ:NOW) to perhaps glean how SHOP may react. NOW beat expectations on both the top and bottom line yet shares fell sharply post earnings. Companies priced for perfection need a substantial beat to keep the momentum going. This assuredly applies to Shopify stock given the recent run up and valuations. * 7 Oversold Stocks To Buy Right Now Stock traders looking to add a short to the portfolio should consider shorting SHOP stock on any rally in front of earnings. Option traders may want to look at selling an out-of-the money bear call spread to position to be a seller at higher levels. Selling the August $350/$355 call spread for a $1.50 net credit provides a 42% return on risk while still allowing for a 5% upside cushion to the $333.34 closing price of SHOP stock.As of this writing, Tim Biggam did not hold a position in any of the aforementioned securities. Anyone interested in finding out more about option-based strategies or for a free trial of the Delta Desk Research Report can email Tim at email@example.com. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Oversold Stocks To Buy Right Now * 7 Stocks to Buy Upgraded by Wall Street * 7 Marijuana Stocks With Critical Levels to Watch The post SHOP Stock Is About To Go on Sale -- After Earnings appeared first on InvestorPlace.
ServiceNow Inc (NYSE: NOW) reported second-quarter results, highlighted by a modest billings beat. ServiceNow's billings and subscriptions adjusted for currency changes and duration came in just 1.4% above expectations, Raymond James' Michael Turits wrote in a note. Management's third-quarter revenue guidance came in just inline with the midpoint of the Street's consensus estimate at $833 million while subscription billings of $848-$853 million missed expectations of $878 million.
ServiceNow's (NOW) second-quarter results benefit primarily from federal deal wins, synergies from partnerships and solid adoption of digital workflows.
Stock futures: Facebook rose early Thursday after solid earnings but mixed guidance. But Tesla dived on a big loss. ServiceNow, Xilinx and Ford sold off too.
In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke checked in with John Donahoe, president and CEO of ServiceNow Inc. , the cloud software provider that delivered an eight-cents-a-share earnings beat with a 35% rise in year-over-year revenues. Donahoe said ServiceNow now serves 75% of the Fortune Global 500 list. NOW recently announced a partnership with Microsoft Corp. , allowing the company to host its platform on Microsoft's Azure cloud service.
Enterprise software company ServiceNow (NOW) saw its stock fall over 5.0% in after-hours trading today after the company reported its Q2 earnings results.
ServiceNow earnings topped views but subscription revenue fell short of analyst estimates. ServiceNow stock fell late Wednesday as subscription revenue guidance missed expectations.
ServiceNow Inc. shares fell in the extended session Wednesday after the enterprise cloud-computing company topped Wall Street estimates. ServiceNow shares fell 6.5% after hours, following a 2.1% rise in the regular session to close at $297.21, for a 55% year-to-date gain. ServiceNow said it expects adjusted subscription revenue of $836 million to $841 million in the third quarter, and $3.29 billion to $3.3 billion for the year. Analysts had forecast subscription revenue of $833.4 million for the third quarter, and $3.25 billion for the year. The company reported a second-quarter loss of $11.1 million, or 6 cents a share, compared with a loss of $52.7 million, or 30 cents a share, in the year-ago period. Adjusted earnings were 71 cents a share. Revenue rose to $833.9 million from $631.1 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 63 cents a share on revenue of $832.1 million.
SANTA CLARA, Calif.-- -- Subscription revenues of $781 million in Q2 2019, representing 33% year-over-year growth 39 transactions over $1 million in net new annual contract value in Q2 2019 766 total customers with over $1 million in annual contract value, representing 33% year-over-year growth ServiceNow today announced financial results for its second quarter ended June 30, 2019, with subscription ...
Stock futures: After the stock market reversed Friday, Amazon, Facebook, ServiceNow are back to buy points ahead of earnings this week. What should you do?