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: 115.630
Low
172.00
Averages
222.81
High
263.00
Current: 115.630
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.
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- Stock Price Surge: ServiceNow's stock has surged 19% over the past two weeks, and despite ongoing concerns about AI's impact, the company demonstrates strong growth potential that continues to attract investor interest.
- Strong Financial Performance: The earnings report released in late January revealed a 19.5% year-over-year increase in subscription revenue, surpassing management's expectations, while remaining performance obligations grew by 22.5%, indicating a rapidly expanding business pipeline.
- Management Confidence: CEO Bill McDermott purchased $3 million worth of stock last month, and the executive team halted automated selling plans, reflecting strong confidence in the company's future value, with aspirations of reaching a $1 trillion market cap.
- AI Opportunity: ServiceNow's Now Assist AI suite achieved $600 million in annual contract value by the end of 2025, with expectations to exceed $1 billion this year, showcasing the company's leadership in AI and robust market demand.
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- Executive Confidence Boosted: CEO Bill McDermott purchased $3 million worth of stock last month, reflecting management's confidence in the company's future value, with a belief that it could reach a market cap of $1 trillion, up from the current $126 billion.
- AI Opportunities Emerging: The Now Assist AI suite's annual contract value is projected to reach $600 million by the end of 2025, with management expecting it to exceed $1 billion this year, highlighting the significance and growth potential of AI in the company's operations.
- Solid Market Position: Despite the overall software sector's recovery, ServiceNow is viewed as a premium investment choice due to its extensive product portfolio and customer loyalty, with a current P/E ratio of 29, still appearing attractive.
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- Supply Chain Risk Designation: The Department of Defense officially designated Anthropic as a supply chain risk last week; however, Palantir continues to rely on the Claude model, reflecting the contradictions and challenges of technological dependencies in a complex geopolitical environment.
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- Adobe's Performance Growth: Despite a 38% drop in stock price due to AI competition fears, Adobe reported over $22 billion in remaining performance obligations, up 13% year-over-year, indicating strong demand for its AI solutions and maintaining its competitive edge in the market.
- ServiceNow's Stable Subscription Revenue: Although the stock is down 50% from its peak, ServiceNow expects around 20% revenue growth this fiscal year, with a 21% year-over-year increase in subscription revenue last quarter and a consistent 98% renewal rate, demonstrating its sustained value in AI workflows.
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See More
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- Stock Price Surge: ServiceNow's stock has surged 19% over the past two weeks, and despite ongoing concerns about AI's impact, the company demonstrates strong growth potential that continues to attract investor interest.
- Strong Financial Performance: The earnings report released in late January revealed a 19.5% year-over-year increase in subscription revenue, surpassing management's expectations, while remaining performance obligations grew by 22.5%, indicating a rapidly expanding business pipeline.
- Management Confidence: CEO Bill McDermott purchased $3 million worth of stock last month, and the executive team halted automated selling plans, reflecting strong confidence in the company's future value, with aspirations of reaching a $1 trillion market cap.
- AI Opportunity: ServiceNow's Now Assist AI suite achieved $600 million in annual contract value by the end of 2025, with expectations to exceed $1 billion this year, showcasing the company's leadership in AI and robust market demand.
See More
ServiceNow Rises Amid AI Wave, Strong Growth Prospects
- Strong Revenue Growth: ServiceNow's subscription revenue grew by 19.5% year-over-year, exceeding management's guidance, indicating robust performance in AI applications and likely continued investor interest.
- Executive Confidence Boosted: CEO Bill McDermott purchased $3 million worth of stock last month, reflecting management's confidence in the company's future value, with a belief that it could reach a market cap of $1 trillion, up from the current $126 billion.
- AI Opportunities Emerging: The Now Assist AI suite's annual contract value is projected to reach $600 million by the end of 2025, with management expecting it to exceed $1 billion this year, highlighting the significance and growth potential of AI in the company's operations.
- Solid Market Position: Despite the overall software sector's recovery, ServiceNow is viewed as a premium investment choice due to its extensive product portfolio and customer loyalty, with a current P/E ratio of 29, still appearing attractive.
See More
UiPath Shares Decline Post-Earnings: The Software Company Struggles to Overcome AI Concerns.
- Earnings Report Impact: UiPath's stock experienced a decline following its fourth-quarter earnings report.
- Revenue Growth Concerns: The company's forecast indicated slower revenue growth for the current fiscal year, dampening expectations related to its potential success in the artificial intelligence sector.
See More
Palantir Continues Using Anthropic's Claude Amid Pentagon Clash
- Collaboration with DOD: Palantir CEO Alex Karp stated that despite the Department of Defense's plans to phase out Anthropic, they are still using the Claude model to support operations in Iran, highlighting Palantir's ongoing influence in defense.
- Product Integration Strategy: Karp mentioned that Palantir's products are integrated with Anthropic's Claude model and may integrate with other large language models in the future, indicating the company's forward-looking approach to AI technology integration.
- Supply Chain Risk Designation: The Department of Defense officially designated Anthropic as a supply chain risk last week; however, Palantir continues to rely on the Claude model, reflecting the contradictions and challenges of technological dependencies in a complex geopolitical environment.
- Market Reaction: This news may affect investor confidence in Palantir, particularly as the intersection of defense and AI gains increasing attention, prompting investors to closely monitor future policy changes.
See More
Stock Analysis of Adobe, ServiceNow, and Netflix
- Adobe Stock Decline: Adobe's shares have fallen 38% over the past year due to concerns about AI competition, currently trading at a forward P/E of 12, reflecting market pessimism despite strong product demand, with remaining performance obligations increasing 13% year-over-year to $22 billion, indicating positive enterprise customer response to its AI solutions.
- ServiceNow Growth Outlook: Although ServiceNow's stock is down 50% from its peak, management expects around 20% year-over-year revenue growth for the current fiscal year, with subscription revenue growing 21% in the recent quarter and renewal rates at 98%, suggesting strong market demand and potential overreaction in stock sell-off.
- Netflix Market Opportunity: Netflix's stock is currently 26% off its recent highs, yet its revenue grew 17% year-over-year in Q4, with free cash flow reaching $9.4 billion, indicating significant growth potential in capturing less than 50% of the estimated 800 million connected households worldwide, with expected annualized earnings growth of 22% over the next several years.
- Investment Opportunity Analysis: While Adobe was not included in The Motley Fool Stock Advisor's top picks, investors may still consider purchasing shares of Adobe, ServiceNow, and Netflix at discounted prices in the current market environment to capitalize on potential long-term growth opportunities.
See More
Investment Opportunities in Discounted Tech Stocks
- Adobe's Performance Growth: Despite a 38% drop in stock price due to AI competition fears, Adobe reported over $22 billion in remaining performance obligations, up 13% year-over-year, indicating strong demand for its AI solutions and maintaining its competitive edge in the market.
- ServiceNow's Stable Subscription Revenue: Although the stock is down 50% from its peak, ServiceNow expects around 20% revenue growth this fiscal year, with a 21% year-over-year increase in subscription revenue last quarter and a consistent 98% renewal rate, demonstrating its sustained value in AI workflows.
- Netflix's Acquisition Withdrawal: Netflix's stock is 26% off recent highs, but management's decision to walk away from the Warner Bros acquisition reflects a disciplined growth strategy, with a 17% year-over-year revenue increase in Q4 and free cash flow reaching $9.4 billion, indicating strong financial health.
- Significant Market Opportunities: With Netflix capturing less than 50% of the estimated 800 million connected households globally, its forward P/E of 31 may seem high, yet considering its 325 million customers and projected 22% annual earnings growth, it remains an attractive investment opportunity.
See More
