ServiceNow, Inc. : The stock forcefully approaches new pivot levels
Published june 29, 2020 at 11:14 am edt
By
Share
BUY
Conditionne
Stop-loss triggered
Entry price
Target
Stop-loss
Potential
$403
$446
$391
+10.67%
ServiceNow Inc. shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The stock is in a well-established, long-term rising trend above the technical support level at 309.39 USD
Weaknesses
● The stock is close to a major daily resistance at USD 402.82, which should be gotten rid of so as to gain new appreciation potential.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 572.81 and 327.61 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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ServiceNow, Inc. is specialized in the development of digital workflow solutions. The group delivers applications to automate the IT operations of companies, optimize employee workflows, improve business processes, etc.
Net sales by revenue source are divided between sales of subscriptions (96.9%) and professional services (3.1%).
Net sales are distributed geographically as follows: North America (62.9%), Europe/Middle East/Africa (25.8%) and other (11.3%).
