“ServiceNow Continues to Impress in the Cloud Software Industry\n\nServiceNow (NOW) has been making waves in the cloud software industry with its strong financial performance and stock growth. In the latest trading session, NOW closed at $716.48, marking a +1.61% increase from the previous day. This outpaced the S&P 500’s daily gain of 0.46%, showcasing the company’s solid fundamentals and resilience in the market.\n\nThe maker of software that automates companies’ technology operations has seen a 10.45% increase in its shares over the last month, surpassing the Computer and Technology sector’s gain of 4.16% and the S&P 500’s gain of 4.85%. \n\nAnalysts are expecting ServiceNow to post earnings of $2.78 per share, marking a 21.93% year-over-year growth. Alongside, the consensus estimate for revenue is $2.4 billion, indicating a 23.47% upward movement from the same quarter last year. These impressive figures are in line with the company’s full-year Zacks Consensus Estimates, which are calling for earnings of $10.44 per share and revenue of $8.93 billion. These results would represent year-over-year changes of +37.55% and +23.27%, respectively.\n\nPositive changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability. This has been proven by the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. With a Zacks Rank of #2 (Buy), ServiceNow is well-positioned for future growth.\n\nIn terms of valuation, ServiceNow is currently trading at a Forward PE ratio of 67.55, which is higher than the industry average of 25.09. This premium is justified by the company’s strong growth potential, as reflected by its PEG ratio of 2.39. This ratio takes into account the company’s expected earnings growth trajectory, and as the market closed yesterday, the Computers – IT Services industry had an average PEG ratio of 2.39.\n\nThe Computers

' Super Micro Computer Continues to Impress with 7.5% Rally and Positive News\n\nSuper Micro Computer (NASDAQ:SMCI) has been on a roll in 2023, with its stock value increasing by 233%. The company's stock saw a slight dip in early August, but it has since bounced back and is now up 7.5% on Thursday. This impressive performance can be attributed to a number of factors, including the prospects of lower interest rates, a potential economic "soft landing," and the release of positive news.\n\nSuper Micro's Growth Story\n\nSuper Micro Computer was once known as a cyclical hardware maker with a low valuation. Over the past two years, the company's revenue and earnings have accelerated significantly, thanks to the growing demand for artificial intelligence (AI) technology. Super Micro's "building block" architecture and energy-efficient designs have made it a top choice for customers in the AI industry, leading to a higher PE multiple and outsized gains for the company.\n\nImpact of Interest Rates on Super Micro's Stock\n\nAs a growth stock, Super Micro's valuation is sensitive to long-term interest rates. The recent Federal Reserve meeting and press conference with Fed Chair Jay Powell have eased concerns about future rate increases and even increased the outlook for rate cuts next year. This has boosted Super Micro's stock, as it is seen as a "risky" investment by some investors.\n\nNew Server Availability and Competitive Advantage\n\nSuper Micro's press release today announced the availability of servers with the new Intel fifth-generation Xeon server processor, which offers a 36% improvement in performance-per-watt. These servers also incorporate Intel's Max GPUs, which could challenge the dominant AI GPU leader Nvidia. Super Micro's building block architecture allows for faster time to market, giving the company a competitive advantage in the AI server market.\n\nReasonable Valuation and Growth Potential\n\n Its 27 PE multiple, Super Micro is still reasonably valued, especially considering its expected revenue growth of 48% in fiscal 2024. '