Servicenow Stock Buy Hold or Sell Recommendation
| NOW Stock | USD 746.29 5.34 0.72% |
Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding ServiceNow is 'Hold'. Macroaxis provides ServiceNow buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NOW positions. The advice algorithm takes into account all of ServiceNow's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting ServiceNow's buy or sell advice are summarized below:
Real Value 697.91 | Target Price 640.91 | Hype Value 746.49 | Market Value 746.29 | Naive Value 723.92 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell ServiceNow given historical horizon and risk tolerance towards ServiceNow. When Macroaxis issues a 'buy' or 'sell' recommendation for ServiceNow, the advice is generated through an automated system that utilizes algorithms and statistical models.
ServiceNow |
Execute ServiceNow Buy or Sell Advice
The ServiceNow recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on ServiceNow. Macroaxis does not own or have any residual interests in ServiceNow or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute ServiceNow's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
ServiceNow Trading Alerts and Improvement Suggestions
| ServiceNow generated a negative expected return over the last 90 days | |
| ServiceNow is unlikely to experience financial distress in the next 2 years | |
| ServiceNow has a strong financial position based on the latest SEC filings | |
| Over 91.0% of the company shares are owned by institutional investors | |
| Latest headline from seekingalpha.com: ServiceNow Q1 earnings preview Can the software firm maintain its momentum |
ServiceNow Returns Distribution Density
The distribution of ServiceNow's historical returns is an attempt to chart the uncertainty of ServiceNow's future price movements. The chart of the probability distribution of ServiceNow daily returns describes the distribution of returns around its average expected value. We use ServiceNow price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of ServiceNow returns is essential to provide solid investment advice for ServiceNow.
| Mean Return | -0.0005 | Value At Risk | -3.15 | Potential Upside | 2.84 | Standard Deviation | 1.80 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of ServiceNow historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
ServiceNow Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as ServiceNow is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading ServiceNow backward and forwards among themselves. ServiceNow's institutional investor refers to the entity that pools money to purchase ServiceNow's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Franklin Resources Inc | 2023-12-31 | 3 M | Edgewood Management Llc | 2023-12-31 | 3 M | Bank Of America Corp | 2023-12-31 | 2.9 M | Jennison Associates Llc | 2023-12-31 | 2.5 M | Norges Bank | 2023-12-31 | 2.3 M | Massachusetts Financial Services Company | 2023-12-31 | 2.3 M | Northern Trust Corp | 2023-12-31 | 2.1 M | Wellington Management Company Llp | 2023-12-31 | 2.1 M | Goldman Sachs Group Inc | 2023-12-31 | 2.1 M | Vanguard Group Inc | 2023-12-31 | 18.1 M | Blackrock Inc | 2023-12-31 | 15.8 M |
ServiceNow Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 209.5M | 901.4M | 53M | (257M) | 429M | 450.5M | |
| Free Cash Flow | 898.4M | 1.4B | 1.8B | 2.2B | 2.7B | 2.8B | |
| Depreciation | 252.1M | 336.4M | 472M | 433M | 562M | 590.1M | |
| Other Non Cash Items | 192.4M | 204.3M | 334M | 375M | 459M | 482.0M | |
| Capital Expenditures | 337.6M | 432.5M | 399M | 550M | 694M | 728.7M | |
| Net Income | 626.7M | 118.5M | 230M | 325M | 1.7B | 1.8B | |
| End Period Cash Flow | 778.0M | 1.7B | 1.7B | 1.5B | 1.9B | 2.0B | |
| Change To Inventory | 35.2M | 120.8M | 9M | (27M) | (31.1M) | (29.5M) | |
| Investments | (379.5M) | (967.1M) | (437M) | (2.6B) | (2.6B) | (2.5B) | |
| Change Receivables | (146.1M) | (259.8M) | (151.4M) | (401M) | (360.9M) | (342.9M) | |
| Change To Netincome | 77.5M | 890.1M | 1.1B | 1.4B | 1.6B | 1.7B | |
| Net Borrowings | (9K) | 1.5B | (61M) | (94M) | (108.1M) | (102.7M) |
ServiceNow Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ServiceNow or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ServiceNow's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ServiceNow stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.11 | |
β | Beta against NYSE Composite | 1.19 | |
σ | Overall volatility | 1.85 | |
Ir | Information ratio | -0.05 |
ServiceNow Volatility Alert
ServiceNow exhibits very low volatility with skewness of -0.33 and kurtosis of 0.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ServiceNow's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ServiceNow's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.ServiceNow Implied Volatility
ServiceNow's implied volatility exposes the market's sentiment of ServiceNow stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if ServiceNow's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that ServiceNow stock will not fluctuate a lot when ServiceNow's options are near their expiration.
ServiceNow Fundamentals Vs Peers
Comparing ServiceNow's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ServiceNow's direct or indirect competition across all of the common fundamentals between ServiceNow and the related equities. This way, we can detect undervalued stocks with similar characteristics as ServiceNow or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of ServiceNow's fundamental indicators could also be used in its relative valuation, which is a method of valuing ServiceNow by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare ServiceNow to competition |
| Fundamentals | ServiceNow | Peer Average |
| Return On Equity | 0.27 | -0.31 |
| Return On Asset | 0.031 | -0.14 |
| Profit Margin | 0.19 % | (1.27) % |
| Operating Margin | 0.11 % | (5.51) % |
| Current Valuation | 149.3 B | 16.62 B |
| Shares Outstanding | 205.38 M | 571.82 M |
| Shares Owned By Insiders | 0.18 % | 10.09 % |
| Shares Owned By Institutions | 90.84 % | 39.21 % |
| Number Of Shares Shorted | 2.95 M | 4.71 M |
| Price To Earning | 415.52 X | 28.72 X |
| Price To Book | 20.70 X | 9.51 X |
| Price To Sales | 17.60 X | 11.42 X |
| Revenue | 8.97 B | 9.43 B |
| Gross Profit | 5.67 B | 27.38 B |
| EBITDA | 1.29 B | 3.9 B |
| Net Income | 1.73 B | 570.98 M |
| Cash And Equivalents | 1.47 B | 2.7 B |
| Cash Per Share | 19.55 X | 5.01 X |
| Total Debt | 2.28 B | 5.32 B |
| Debt To Equity | 0.47 % | 48.70 % |
| Current Ratio | 1.24 X | 2.16 X |
| Book Value Per Share | 37.26 X | 1.93 K |
| Cash Flow From Operations | 3.4 B | 971.22 M |
| Short Ratio | 2.43 X | 4.00 X |
| Earnings Per Share | 8.45 X | 3.12 X |
| Price To Earnings To Growth | 2.89 X | 4.89 X |
| Target Price | 856.36 | |
| Number Of Employees | 22.67 K | 18.84 K |
| Beta | 0.96 | -0.15 |
| Market Capitalization | 152.18 B | 19.03 B |
| Total Asset | 17.39 B | 29.47 B |
| Retained Earnings | 2.07 B | 9.33 B |
| Working Capital | 412 M | 1.48 B |
Note: Disposition of 3707 shares by Russell Elmer of ServiceNow subject to Rule 16b-3 [view details]
ServiceNow Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as ServiceNow . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 40741.18 | |||
| Daily Balance Of Power | 0.2947 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 748.19 | |||
| Day Typical Price | 747.56 | |||
| Price Action Indicator | 0.77 | |||
| Period Momentum Indicator | 5.34 | |||
| Relative Strength Index | 71.62 |
About ServiceNow Buy or Sell Advice
When is the right time to buy or sell ServiceNow? Buying financial instruments such as ServiceNow Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Other Current Liabilities | 850M | 975M | 1.4B | 1.4B | Total Assets | 10.8B | 13.3B | 17.4B | 18.3B |
Use Investing Ideas to Build Portfolios
In addition to having ServiceNow in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Software Thematic Idea Now
Software
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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Check out ServiceNow Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy ServiceNow Stock please use our How to Invest in ServiceNow guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for ServiceNow Stock analysis
When running ServiceNow's price analysis, check to measure ServiceNow's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ServiceNow is operating at the current time. Most of ServiceNow's value examination focuses on studying past and present price action to predict the probability of ServiceNow's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ServiceNow's price. Additionally, you may evaluate how the addition of ServiceNow to your portfolios can decrease your overall portfolio volatility.
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Is ServiceNow's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ServiceNow. If investors know ServiceNow will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ServiceNow listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.927 | Earnings Share 8.45 | Revenue Per Share 43.946 | Quarterly Revenue Growth 0.256 | Return On Assets 0.031 |
The market value of ServiceNow is measured differently than its book value, which is the value of ServiceNow that is recorded on the company's balance sheet. Investors also form their own opinion of ServiceNow's value that differs from its market value or its book value, called intrinsic value, which is ServiceNow's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ServiceNow's market value can be influenced by many factors that don't directly affect ServiceNow's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ServiceNow's value and its price as these two are different measures arrived at by different means. Investors typically determine if ServiceNow is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ServiceNow's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.