ServiceNow and Vertiv Featured as Strong AI Stock Buys

ServiceNow and Vertiv Holdings emerge as attractive AI stocks to consider. Both firms exhibit growth potential amid a tech sell-off driven by profit-taking and market fluctuations.

Date: 03-03-2025

AI Rating: 7

Earnings Per Share (EPS): Vertiv reported a 60% growth in adjusted EPS for FY24, which follows a significant expansion of 230% in 2023. This strong positive trend indicates robust performance and potential investor confidence in Vertiv's future earnings capability.

Revenue Growth: ServiceNow has shown consistent revenue growth, achieving a 22% growth in 2024. Projections indicate 19% revenue growth for 2025 and 2026, emphasizing its potential in the AI domain. Similarly, Vertiv expects a 15% revenue growth in both 2025 and 2026, supported by its strategic positioning in the AI data center sector.

Profit Margins: There was no direct mention of profit margins in the report, which may limit visibility concerning profitability levels.

Free Cash Flow (FCF): The report does not provide specific details regarding Free Cash Flow dynamics for either company, leaving a gap in the analysis of their liquidity positions.

Return on Equity (ROE): The report does not mention the Return on Equity, thereby not allowing for evaluation against this important metric.

In conclusion, ServiceNow and Vertiv are positioned in sectors with favorable growth projections, particularly related to AI advancements. The current market sell-off provides a potential buying opportunity for long-term investors, as indicated by their respective EPS growth and revenue forecasts. The broader risk-off sentiment in the Nasdaq may create additional volatility, and traders might utilize this situation tactically.

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