Please ensure Javascript is enabled for purposes of website accessibility

2 Monstrous Software Stocks That Are on Sale

By Jose Najarro - Updated Jun 9, 2021 at 3:47PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The stock prices for both these companies have fallen more than 20%.

In today's video I look at fundamentals and valuation metrics for the following stocks: Coupa Software (COUP -4.69%) and ServiceNow (NOW -1.61%). 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

  1. Coupa reported 40% year-over-year (YOY) revenue growth and 30% YOY subscription revenue growth for the first quarter of fiscal 2022.
  2. Coupa is a growth monster that has seen full-year revenue increase by over 38% for the past five years.
  3. 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

  1. ServiceNow is a growth monster that has seen full-year revenue increase by over 30% for the past five years.
  2. 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.
  3. 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. 


Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Coupa Software and ServiceNow, Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ServiceNow Stock Quote
$488.76 (-1.61%) $-7.98
Coupa Software Incorporated Stock Quote
Coupa Software Incorporated
$70.46 (-4.69%) $-3.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.