Servicenow shares: The competition only looks at the taillights!

Servicenow’s price return: Is this enough in comparison?

Servicenow has achieved 43.54% of its performance in the past 12 months. Similar stocks in the “software” industry rose by an average of 35.32%, which means that Servicenow’s performance in the industry comparison is better than +8.21%. The median return of the “information technology” sector last year was 30.03%. Servicenow is 13.51% higher than this average. The overperformance in these two areas led to a “buy” rating in this category.

Servicenow: How did RSI perform?

A well-known method used in technical analysis to assess whether a security is currently “overbought” or “oversold” is the Relative Strength Index (RSI). It compares changes in prices over time. We consider Servicenow’s 7-day and 25-day RSI. Let’s start with the 7-day RSI, which is currently 43.47 points. This means that Servicenow is currently neither overbought nor oversold. Therefore, the shares are classified as “holding.” What about the 25-day RSI? Like RSI7, Servicenow is neither overbought nor oversold on this basis (value 34.38). Therefore, RSI25 securities are also rated as “hold”. Most importantly, in our analysis, Servicenow was rated as “hold” at this point.

Should investors sell now? Or is it worth joining ServiceNow?

What is the fundamental analysis like?

Servicenow’s current price-to-earnings ratio is 607.73. Compared with the value of the “software” sector (PE ratio of 150.63), this share is higher than the average (about 303%). From a basic standard point of view, Servicenow is overvalued and therefore received a “sell” rating at this level.

Analysts are optimistic

Based on the long-term opinions of analysts, Servicenow stock will receive a “buy” rating. In general, the following ratings are available: 28 buy, 1 hold, and 0 sell. Since last month, Servicenow has no analyst updates. Finally, the analyst’s target price is also related to the valuation of the entire stock. The settlement price is US$636.78. This means that the stock’s future performance will reach -2.06%, because its current cost is $650.19. This development has led to classification “maintained.” As an editorial team, we give the overall analyst a “buy” rating.