10 Best Strong Buy Stocks To Buy Right Now

3. ServiceNow, Inc. (NYSE:NOW)

Analyst Upside: 43.76%

Number of Hedge Fund Holders: 110

ServiceNow, Inc. (NYSE:NOW) offers an AI platform for business transformation, boosting productivity and maximizing business outcomes. Its intelligent platform, Now Platform, provides end-to-end workflow automation for digital businesses. Now Platform functions as a cloud-based solution embedded with AI and ML.

The company recently announced a major acquisition of Moveworks, a privately held AI solutions developer, to bolster its AI capabilities. ServiceNow, Inc. (NYSE:NOW) reported that it would combine its native AI technology with Moveworks’ front-end AI assistant and search technology. This $2.85 billion acquisition will help the company compete in agentic AI, which is AI able to perform tasks with some degree of autonomy.

Moveworks’ sophisticated AI agent technology will allow ServiceNow, Inc. (NYSE:NOW) to develop a universal AI assistant specializing in boosting employee engagement by providing rapid responses to questions and automating routine tasks. The transaction is anticipated to conclude in the latter half of 2025, positioning ServiceNow, Inc. (NYSE:NOW) as one of the best strong buy stocks to buy right now. Polen Focus Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q4 2024 investor letter:

“Similar to last quarter, ServiceNow, Inc. (NYSE:NOW) was a top relative contributor, a testament to the consistent, high-level execution they’ve demonstrated over the past several years. The company’s latest earnings report highlighted across-the-board strength, with better-than-expected results across key metrics such as renewal rates, subscription growth, average contract value growth per $1M+ customer, etc. This is a company on offense, attacking a large and growing addressable market and positioning it for a long growth runway—especially considering their early success at integrating GenAI capabilities, which should only drive increasing workflow efficiencies for customers in the years ahead.

We trimmed our positions in UnitedHealth Group, Amazon, ServiceNow, and Gartner during the quarter. ServiceNow and Gartner were valuation-related trims. With ServiceNow, we still expect 20%+ revenue and earnings growth for the foreseeable future. Still, the strong stock price performance has reduced the future return potential somewhat, and we used the proceeds to add to our Eli Lilly position.”