In today’s video I look at fundamentals and valuation metrics for the following stocks: Coupa Software (NASDAQ:COUP) and ServiceNow (NYSE:NOW). Below I share a few highlights from the video showing why investors should add them to their watch lists.
Three reasons to add Coupa to your watch list
- Coupa reported 40% year-over-year (YOY) revenue growth and 30% YOY subscription revenue growth for the first quarter of fiscal 2022.
- Coupa is a growth monster that has seen full-year revenue increase by over 38% for the past five years.
- Coupa is ensuring its place in the front row of innovation products by launching Coupa Ventures. The object of this venture fund is to invest in early innovative growth companies within Coupa’s market.
Three reasons to add ServiceNow to your watch list
- ServiceNow is a growth monster that has seen full-year revenue increase by over 30% for the past five years.
- ServiceNow has exceptional fundamentals for its trailing 12 months (TTM). It has positive cash flow from operations, positive earnings, and more cash and short-term investments than debt.
- ServiceNow has a sticky business. The company reported a 97% renewal rate for the first quarter of 2021.
Click the video below for my full thoughts and analysis.
*Stock prices used were the mid-day prices of June 8, 2021. The video was published on June 8, 2021.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.