Is American Century U.S. Quality Growth ETF (QGRO) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 02 2024
0mins
Should l Buy NOW?
Source: NASDAQ.COM
Overview of American Century U.S. Quality Growth ETF (QGRO): Launched in 2018, QGRO offers investors exposure to the All Cap Growth category, focusing on large and mid-cap U.S. companies with strong growth and quality fundamentals, while maintaining a low expense ratio of 0.29%.
Performance and Comparison: As of September 2024, QGRO has shown a return of approximately 27.20% over the past year, with significant holdings in the Information Technology sector; however, investors may also consider lower-cost alternatives like iShares Morningstar Growth ETF and iShares Core S&P U.S. Growth ETF for similar market exposure.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 103.070
Low
172.00
Averages
222.81
High
263.00
Current: 103.070
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ServiceNow Reports 22% Subscription Revenue Growth in Q1
- Significant Revenue Growth: ServiceNow's Q1 subscription revenue rose 22% year-over-year to $3.67 billion, with total revenue also increasing by 22% to $3.77 billion, reflecting strong demand in the enterprise workflow software market.
- Increased Contract Obligations: The company's current remaining performance obligations (cRPO) grew by 22.5% to $12.64 billion, indicating optimistic revenue expectations for the next 12 months, despite ongoing market concerns about AI disruption.
- Innovative Pricing Model: CEO Bill McDermott highlighted that 50% of new business now comes from a non-seat-based pricing model, combining foundational seat licenses with usage-based scalability, which enhances customer flexibility in AI adoption and strengthens market competitiveness.
- Cautious Market Outlook: Although the company raised its full-year subscription revenue guidance to $15.735 billion to $15.775 billion, the impact of the Armis acquisition is expected to pressure profitability, potentially leading to declines in gross margin and free cash flow in the coming quarters.
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ServiceNow Shares Plunge 17% Post Earnings Report Despite Strong Revenue Growth
- Strong Revenue Growth: ServiceNow's Q1 subscription revenue rose 22% year-over-year to $3.67 billion, with total revenue also climbing 22% to $3.77 billion, indicating robust business momentum in the enterprise workflow software sector.
- Optimistic Contract Revenue Outlook: The company's current remaining performance obligations (cRPO) increased by 22.5% to $12.64 billion, suggesting strong expectations for contract revenue over the next 12 months, despite market concerns regarding the shift in pricing models due to AI.
- Acquisition Impact on Profitability: While the company raised its full-year subscription revenue guidance to $15.735 billion to $15.775 billion, this outlook includes contributions from the acquisition of cybersecurity firm Armis, which is expected to pressure gross margins and free cash flow in the coming years.
- Cautious Market Reaction: Despite management emphasizing strong organic growth, the market remains cautious about ServiceNow's valuation, which is still around a 50 price-to-earnings ratio, indicating a lack of margin of safety amid ongoing AI disruption fears.
See More
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- Energy Security Threat: IEA head Fatih Birol warned that the current conflict has resulted in a loss of 13 million barrels of oil per day, marking the biggest energy security threat in history, which could trigger global market volatility.
- Market Reaction: U.S. stocks pulled back as investors grew wary of the ceasefire's prospects, while Asian markets opened mixed, reflecting a cautious sentiment regarding future developments.
- Corporate Layoffs: Meta plans to lay off 10% of its workforce, approximately 8,000 employees, while Nike will cut 1,400 jobs, indicating structural adjustments in the tech sector amid accelerated AI investments.
See More
Palantir Shares Drop 7.2% Amid Market Fear Following ServiceNow's Report
- Market Fear Impact: Palantir's shares fell 7.2% on Thursday due to market panic triggered by ServiceNow's quarterly report, indicating a waning investor confidence in software stocks that could affect future investment decisions.
- Strong Earnings Performance: Palantir reported a 70% year-over-year revenue growth in Q4, reaching $1.41 billion, with U.S. commercial revenue surging 137% to $507 million, showcasing robust demand and market position in the AI data analytics sector.
- Optimistic Future Outlook: Palantir projects Q1 2026 revenue between $1.532 billion and $1.536 billion, reflecting confidence in future growth, although concerns about its valuation persist in the market.
- Significant Valuation Risks: Despite Palantir's impressive growth narrative, its market cap stands at approximately $338 billion with a P/E ratio exceeding 200, highlighting the risks associated with high valuations that may lead to a potential re-rating of the stock.
See More
Palantir Reports 70% Revenue Growth in Q4
- Accelerating Revenue Growth: Palantir's Q4 revenue surged 70% year-over-year to $1.41 billion, showcasing strong momentum in the AI data analytics sector, particularly with U.S. commercial revenue skyrocketing 137% to $507 million, indicating sustained market demand for its offerings.
- Optimistic Outlook: Management projects Q1 2026 revenue between $1.532 billion and $1.536 billion, implying nearly 9% sequential growth, reflecting confidence in future growth despite declining market trust in software stocks.
- Significant Valuation Risk: With a market capitalization of approximately $338 billion and a stock price exceeding 200 times earnings, Palantir's optimistic growth expectations may be overly ambitious, especially as forward-looking indicators show signs of deceleration, potentially leading to a stock re-rating.
- Market Sentiment Volatility: Following ServiceNow's quarterly report, Palantir shares fell 7.2%, highlighting market panic towards software stocks, even as ServiceNow reported a 22% subscription revenue growth, suggesting that such fear could undermine investor confidence in Palantir.
See More
Stocks Decline on Iran News, ServiceNow and Tesla Drop
- Market Decline: Stocks fell sharply due to news related to Iran, with ServiceNow and Tesla experiencing significant drops, indicating the market's sensitivity to geopolitical risks.
- AI Stock Volatility: Despite the overall market downturn, Intel and Comfort Systems reported strong earnings in their AI-related segments, highlighting potential growth opportunities in the tech sector.
- Earnings Impact: The earnings reports from Intel and Comfort Systems drew investor attention, suggesting that despite a declining market, their performance in AI could provide new investment perspectives moving forward.
- Shifting Market Sentiment: As geopolitical tensions rise, investor sentiment has turned cautious, potentially leading to increased market volatility in the short term and affecting overall investment strategies.
See More
ServiceNow Reports 22% Subscription Revenue Growth in Q1
- Significant Revenue Growth: ServiceNow's Q1 subscription revenue rose 22% year-over-year to $3.67 billion, with total revenue also increasing by 22% to $3.77 billion, reflecting strong demand in the enterprise workflow software market.
- Increased Contract Obligations: The company's current remaining performance obligations (cRPO) grew by 22.5% to $12.64 billion, indicating optimistic revenue expectations for the next 12 months, despite ongoing market concerns about AI disruption.
- Innovative Pricing Model: CEO Bill McDermott highlighted that 50% of new business now comes from a non-seat-based pricing model, combining foundational seat licenses with usage-based scalability, which enhances customer flexibility in AI adoption and strengthens market competitiveness.
- Cautious Market Outlook: Although the company raised its full-year subscription revenue guidance to $15.735 billion to $15.775 billion, the impact of the Armis acquisition is expected to pressure profitability, potentially leading to declines in gross margin and free cash flow in the coming quarters.
See More
ServiceNow Shares Plunge 17% Post Earnings Report Despite Strong Revenue Growth
- Strong Revenue Growth: ServiceNow's Q1 subscription revenue rose 22% year-over-year to $3.67 billion, with total revenue also climbing 22% to $3.77 billion, indicating robust business momentum in the enterprise workflow software sector.
- Optimistic Contract Revenue Outlook: The company's current remaining performance obligations (cRPO) increased by 22.5% to $12.64 billion, suggesting strong expectations for contract revenue over the next 12 months, despite market concerns regarding the shift in pricing models due to AI.
- Acquisition Impact on Profitability: While the company raised its full-year subscription revenue guidance to $15.735 billion to $15.775 billion, this outlook includes contributions from the acquisition of cybersecurity firm Armis, which is expected to pressure gross margins and free cash flow in the coming years.
- Cautious Market Reaction: Despite management emphasizing strong organic growth, the market remains cautious about ServiceNow's valuation, which is still around a 50 price-to-earnings ratio, indicating a lack of margin of safety amid ongoing AI disruption fears.
See More
US Israel-Lebanon Ceasefire Extended Amid Tensions
- Ceasefire Extension: President Trump announced that Israel and Lebanon agreed to extend their ceasefire by three weeks, aiming to buy more time for diplomatic negotiations, although the ongoing tensions may impact investor confidence.
- Energy Security Threat: IEA head Fatih Birol warned that the current conflict has resulted in a loss of 13 million barrels of oil per day, marking the biggest energy security threat in history, which could trigger global market volatility.
- Market Reaction: U.S. stocks pulled back as investors grew wary of the ceasefire's prospects, while Asian markets opened mixed, reflecting a cautious sentiment regarding future developments.
- Corporate Layoffs: Meta plans to lay off 10% of its workforce, approximately 8,000 employees, while Nike will cut 1,400 jobs, indicating structural adjustments in the tech sector amid accelerated AI investments.
See More
Palantir Shares Drop 7.2% Amid Market Fear Following ServiceNow's Report
- Market Fear Impact: Palantir's shares fell 7.2% on Thursday due to market panic triggered by ServiceNow's quarterly report, indicating a waning investor confidence in software stocks that could affect future investment decisions.
- Strong Earnings Performance: Palantir reported a 70% year-over-year revenue growth in Q4, reaching $1.41 billion, with U.S. commercial revenue surging 137% to $507 million, showcasing robust demand and market position in the AI data analytics sector.
- Optimistic Future Outlook: Palantir projects Q1 2026 revenue between $1.532 billion and $1.536 billion, reflecting confidence in future growth, although concerns about its valuation persist in the market.
- Significant Valuation Risks: Despite Palantir's impressive growth narrative, its market cap stands at approximately $338 billion with a P/E ratio exceeding 200, highlighting the risks associated with high valuations that may lead to a potential re-rating of the stock.
See More
Palantir Reports 70% Revenue Growth in Q4
- Accelerating Revenue Growth: Palantir's Q4 revenue surged 70% year-over-year to $1.41 billion, showcasing strong momentum in the AI data analytics sector, particularly with U.S. commercial revenue skyrocketing 137% to $507 million, indicating sustained market demand for its offerings.
- Optimistic Outlook: Management projects Q1 2026 revenue between $1.532 billion and $1.536 billion, implying nearly 9% sequential growth, reflecting confidence in future growth despite declining market trust in software stocks.
- Significant Valuation Risk: With a market capitalization of approximately $338 billion and a stock price exceeding 200 times earnings, Palantir's optimistic growth expectations may be overly ambitious, especially as forward-looking indicators show signs of deceleration, potentially leading to a stock re-rating.
- Market Sentiment Volatility: Following ServiceNow's quarterly report, Palantir shares fell 7.2%, highlighting market panic towards software stocks, even as ServiceNow reported a 22% subscription revenue growth, suggesting that such fear could undermine investor confidence in Palantir.
See More
Stocks Decline on Iran News, ServiceNow and Tesla Drop
- Market Decline: Stocks fell sharply due to news related to Iran, with ServiceNow and Tesla experiencing significant drops, indicating the market's sensitivity to geopolitical risks.
- AI Stock Volatility: Despite the overall market downturn, Intel and Comfort Systems reported strong earnings in their AI-related segments, highlighting potential growth opportunities in the tech sector.
- Earnings Impact: The earnings reports from Intel and Comfort Systems drew investor attention, suggesting that despite a declining market, their performance in AI could provide new investment perspectives moving forward.
- Shifting Market Sentiment: As geopolitical tensions rise, investor sentiment has turned cautious, potentially leading to increased market volatility in the short term and affecting overall investment strategies.
See More
