Technology Sector Ideas

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>>> ServiceNow (NOW) -


https://finance.yahoo.com/news/3-tech-stocks-getting-ready-043209809.html


ServiceNow (NYSE:NOW) is a software service provider that is gaining ground in the IT service management business. The company has a strong user base and an improved cost structure that will pay off in the long run.

Despite the drag of rising interest rates and a faltering economy, ServiceNow has exceeded analysts’ earnings estimates in each of the past four quarters.

In its recently reported fourth-quarter results, the company saw earnings of $2.28 per adjusted share, up 46% year over year. Revenue also came in ahead of Wall Street’s estimates, rising 20% to $1.94 billion. Subscription revenue was up 22% to $1.86 billion, also better than expected, as was management’s subscription revenue forecast of $8.44 billion to $8.5 billion for the full year. Analysts had been calling for just $8.36 billion.

Finally, despite the headwinds facing the tech sector and the broader economy, ServiceNow’s management said it has no plans to cut its workforce this year. Investors should take this as a sign of confidence given all the layoffs currently happening at major tech companies.

NOW stock is down just 6.5% over the past year, outperforming the S&P 500. Moreover, shares have gotten off to a strong start in 2023, rising 19%. And they are up 37% since hitting a 52-week low of $337 on Oct. 13. A return to NOW’s all-time high above $700 a share would mean a gain of more than 50% from the current price. But first, the stock will need to break past $500, which could be in the cards sooner rather than later.

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