Trade-Ideas LLC identified

ServiceNow

(

NOW

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified ServiceNow as such a stock due to the following factors:

  • NOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $130.0 million.
  • NOW is down 6.7% today from today's close.

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More details on NOW:

ServiceNow, Inc. provides cloud-based solutions that define, structure, manage, and automate services to enterprise operations in North America, Europe, the Middle East, Africa, the Asia Pacific, and other countries. Currently there are 15 analysts that rate ServiceNow a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for ServiceNow has been 1.3 million shares per day over the past 30 days. ServiceNow has a market cap of $12.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.80 and a short float of 5.4% with 4.21 days to cover. Shares are down 9.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ServiceNow as a

sell

. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, SERVICENOW INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • NOW's debt-to-equity ratio of 0.90 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.40 is sturdy.
  • SERVICENOW INC has improved earnings per share by 7.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SERVICENOW INC reported poor results of -$1.23 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings ($0.29 versus -$1.23).
  • The gross profit margin for SERVICENOW INC is currently very high, coming in at 74.43%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -15.71% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 152.26% to $63.07 million when compared to the same quarter last year. In addition, SERVICENOW INC has also vastly surpassed the industry average cash flow growth rate of -7.30%.

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