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The secret to crushing the market is finding companies that provide products and services that transform lives. Not only will the company thrive, but investors will also see their shares skyrocket.
That’s exactly the case with the little-known tech stock we’re bringing Money Morning Members today…
One of the hottest trends in the tech sector right now is global infrastructure. And by infrastructure, we mean cloud-based information technology.
Of course, a company is not worthy of your investment just because it calls itself a cloud provider. It needs to be proven. It needs a track record. And it needs growth – consistent growth.
And then the stock has to be priced right. The tech stock we have today meets all of these requirements.
By Robinson’s calculations, this stock should double in just under one year’s time…
This Tech Stock Checks All the Boxes
One of Robinson’s favorite stocks is ServiceNow Inc. (Nasdaq: NOW), and he projects earnings per share will grow by an average of 66% over the next three years.
Over the past three years, the firm has had an average of 232% earnings growth. But Robinson wants to be extra conservative, so he slashed that number two-thirds to get a compound growth rate of 77%.
Because of that earnings growth, Robinson predicts this stock could double in the next 11 months.
Management is a key component to a company’s success, and ServiceNow boasts a top-notch CEO. About a year ago, the company enticed John Donahue, former head of eBay Inc. (Nasdaq: EBAY), to join the firm. As CEO of eBay from 2008 until 2015, he doubled sales to $18 billion. Even better, he increased the firm’s market value by 250%.
But ServiceNow is no stranger to strong growth itself. Over the past three years, ServiceNow has grown its sales an average of 41%. By the way, that’s faster than the cloud division at Amazon.com Inc. (Nasdaq: AMZN). Not so bad to beat one of the premier tech giants in the world at its own game.
Thanks to its intense focus on providing the best IT-as-a-service (ITaaS), ServiceNow has racked up an impressive list of clients and partners.
More than 800 members of the Forbes Global 2000 use ServiceNow products. That’s a nice chunk of market share for any company. And that means the sky is the limit with regard to growth.
After all, that is what it is all about. The best earnings growth companies are rewarded by superior price performance by their shares. ServiceNow is right in that sweet spot.