Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified ServiceNow ( NOW) as a post-market leader 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 $93.3 million.
- NOW is up 7.5% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NOW with the Ticky from Trade-Ideas. See the FREE profile for NOW NOW at Trade-Ideas More details on NOW: ServiceNow, Inc. engages in the provision of cloud-based services to automate enterprise IT operations primarily in North America, Europe, the Middle East, Africa, and the Asia Pacific. Currently there are 9 analysts that rate ServiceNow a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for ServiceNow has been 1.5 million shares per day over the past 30 days. ServiceNow has a market cap of $8.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.26 and a short float of 5.8% with 3.00 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. 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 generally deteriorating net income. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Software industry. The net income has decreased by 12.7% when compared to the same quarter one year ago, dropping from -$13.05 million to -$14.71 million.
- SERVICENOW INC reported flat earnings per share in the most recent quarter. This year, the market expects an improvement in earnings (-$0.08 versus -$0.31).
- 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.
- The gross profit margin for SERVICENOW INC is rather high; currently it is at 68.58%. 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 -13.22% is in-line with the industry average.
- Net operating cash flow has significantly increased by 128.26% to $20.72 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 -14.95%.
- You can view the full ServiceNow Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.