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2 Monstrous Software Stocks That Are on Sale

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

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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.

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Stocks Mentioned

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

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

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