In this article, we will explore the 8 most profitable large-cap stocks to invest in.
US Stocks Surge as Economic Outlook Brightens
In the second half of 2024, the financial markets are navigating a complex landscape marked by volatility and cautious optimism. Recent reports indicate that the US economy has shown resilience, with growth rates remaining solid despite concerns about inflation and potential recession. Analysts from JPMorgan Asset Management highlight that the US economy has shown strong momentum in recent months, fueled by resilient consumer spending. Analysts suggest that with few excesses in cyclical sectors, the likelihood of a recession triggered by internal factors remains low. Moderate consumer spending is expected to support steady growth into 2025. However, with the upcoming US election, shifting monetary policies, and ongoing geopolitical tensions, there are external risks that could impact this expansion.
On October 9, 2024, US stocks rose for the second consecutive session, with the S&P 500 and Dow Jones Industrial Average closing at record highs. The S&P 500 climbed 0.71% to finish at 5,792.04, while the Nasdaq Composite gained 0.6%, closing at 18,291.62. The Dow surged by 431.63 points, or 1.03%, to settle at 42,512.00 and at a record close. Technology stocks led the rally, reflecting strong investor sentiment despite ongoing geopolitical concerns.
The market’s positive momentum followed the release of minutes from the Federal Reserve’s September meeting, which disclosed a preference among many participants for a larger rate cut. Mike Bailey, director of research at FBB Capital Partners, noted that the Fed’s actions are a key driver behind the market’s performance.
Overall, Wall Street is showing resilience, supported by optimism regarding the Fed’s ability to manage a soft landing for the economy, especially after the September jobs report showed strong growth in the labor market.
In a recent interview on CNBC’s “Closing Bell,” Malcolm Ethridge, managing partner at Capital Area Planning Group, shared his insights on the current state of the markets, particularly regarding mega-cap stocks and the impact of artificial intelligence (AI). Ethridge emphasized that the ongoing bull market, which has seen a remarkable 60% increase over the past two years, is likely to continue, driven primarily by advancements in AI technology. He noted that AI has demonstrated significant staying power, with companies like Microsoft and NVIDIA leading the charge. Ethridge posed an intriguing question: which stock will emerge as the next major player in the ongoing AI arms race?
Ethridge pointed out that mega-cap companies have not relied heavily on borrowing for growth. As the Federal Reserve begins to cut rates, he believes this will enable more companies to issue debt or borrow and invest in AI, potentially fueling further market expansion. He cautioned, however, that historical norms may not apply in this unique economic environment shaped by the COVID-19 pandemic. Overall, Ethridge remains optimistic about mega-cap stocks leading the way.
With this background in mind, let’s take a look at the 8 most profitable large-cap stocks to invest in.
An iconic financial building in the background, with silhouettes of busy bankers walking past in the foreground.
Methodology
To compile our list of the 8 most profitable large-cap stocks to invest in, we used stock screeners from Finviz and Yahoo Finance. First, we defined large-cap stocks as those with a market capitalization between $20 billion and $200 billion. Next, we focused on profitability by filtering for stocks that had an estimated 5-year EPS growth rate of over 10%. We sorted our results based on market capitalization and picked the top 20 stocks.
From this initial list of 20 profitable large-cap stocks, we further narrowed our choices to stocks that had positive trailing twelve-month (TTM) net income and stocks that have grown their net income positively over the past 5 years. To ensure the reliability of our findings, we consulted reputable sources such as SeekingAlpha, which provided insights into the net income compound annual growth rate (CAGR) over the past five years, and Macrotrends, which offered information on TTM net income.
Finally, from this list of large-cap stocks that met our criteria, we focused on the top 8 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s database of 912 elite hedge funds. The 8 most profitable large-cap stocks to invest in are ranked below in ascending order based on the number of hedge funds holding stakes in them as of Q2 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
8 Most Profitable Large Cap Stocks To Invest In
8. American Express Company (NYSE:AXP)
TTM Net Income: $9.83 Billion
5-Year Net Income CAGR: 7.12%
Number of Hedge Fund Holders: 68
American Express Company (NYSE:AXP), also known as Amex, is a leading American bank holding company that specializes in financial services, particularly payment cards. The company operates an online-only banking division without physical branches. Amex’s integrated platform includes card issuance, merchant acquiring, and a robust card network, catering to consumers, small businesses, and large corporations worldwide. American Express cards are widely accepted at millions of merchants globally. It is one of the most valuable fintech companies. American Express Company (NYSE:AXP) also offers a range of travel-related services.
The company has significantly grown the scale of its business since the end of 2021, with revenues increasing by nearly 50% and Card Member spending rising by almost 40%. The company added around 23 million new cards and over 30 million merchant locations. This growth is driven by a strong customer base, effective expense management, and strategic investments in their Membership Model.
Amex is committed to its strategy of continually updating its products, focusing on enhancing the value of its premium cards to appeal to customers of all ages and backgrounds. This approach allows American Express to attract many new premium card members and increase engagement with current customers. American Express Company (NYSE:AXP) is on track to refresh around 40 of its products worldwide by the end of this year.
In the second quarter of 2024, American Express Company (NYSE:AXP) reported record quarterly revenue of $16.3 billion, an 8% increase year-over-year, largely due to higher net interest income, increased Card Member spending, and strong card fee growth. Net income for the quarter reached $3.0 billion, or $4.15 per share, marking a significant rise from the previous year. The company reported earnings per share of $4.15, up 44% year-over-year. This included a $0.66 gain from the sale of Accertify. When excluding the Accertify gain, adjusted earnings were still up 21% compared to the previous year.
The company’s board of directors recently announced a quarterly dividend of $0.70 per common share. This dividend will be paid on November 8, 2024, to shareholders who are on record as of October 4, 2024.
Moreover, the company plans to invest around $6 billion in marketing this year, up around $800 million compared to 2023. American Express Company (NYSE:AXP) is committed to growing its core business.
This combination of robust financial performance and strategic initiatives makes AXP a compelling stock for investors looking for growth opportunities. American Express Company (NYSE:AXP) has managed to grow its top line at a compound annual growth rate (CAGR) of 8.65% over the past five years, while its bottom line has increased at a CAGR of 7.12% during the same period.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 68 hedge funds held stakes in American Express Company (NYSE:AXP). As of June 30, Berkshire Hathaway holds 151.61 million shares of the company, valued at over $35 billion, making it AXP’s most prominent shareholder.
7. Applied Materials Inc. (NASDAQ:AMAT)
TTM Net Income: $7.45 Billion
5-Year Net Income CAGR: 21.92%
Number of Hedge Fund Holders: 77
Applied Materials Inc. (NASDAQ:AMAT) is an American company that specializes in materials engineering solutions essential for manufacturing semiconductor chips and advanced displays. As one of the largest suppliers of semiconductor equipment globally, the company provides a range of products and services that support the production of electronics, flat panel displays, and solar products, playing a crucial role in the tech industry.
The company is at the forefront of advancing semiconductor technology, focusing on energy-efficient computing to support the growing demands of artificial intelligence (AI) and other emerging technologies. The company is enhancing its product offerings by integrating materials engineering solutions, which are crucial for improving chip performance. This includes innovations in advanced logic, high-performance DRAM, and high-bandwidth memory, all designed to meet the increasing need for power-efficient chips in data centers and other applications.
Applied Materials Inc. (NASDAQ:AMAT) aims to enhance its collaborations in order to stay ahead in the evolving device architecture landscape, boost success rates, and improve investment efficiency. To support its partnerships, Applied Materials plans to develop its global EPIC platform over the next few years. This platform is designed to promote rapid innovation and help bring next-generation technologies to market more quickly. With a strong market position and a commitment to research and development, the company is well-equipped to capitalize on the multi-trillion-dollar opportunities presented by AI, IoT, robotics, electric and autonomous vehicles, and clean energy.
Applied Materials Inc. (NASDAQ:AMAT) recently reported impressive results for the third quarter of 2024, achieving record revenue of $6.78 billion, a 5% increase from the same period in the previous year. Strong demand for its innovative products and services, particularly in the AI sector, has positioned the company for continued growth in the semiconductor market.
In addition to robust revenue, the company generated $2.39 billion in cash from operations and returned $1.19 billion to shareholders through dividends and share repurchases. CEO Gary Dickerson highlighted that the ongoing race for AI leadership is driving demand for their unique offerings, setting the stage for Applied to outperform its competitors in the long run.
Over the past five years, Applied Materials Inc. (NASDAQ:AMAT) has grown its revenue at a compound annual growth rate (CAGR) of 12.94%, while its net income has increased at a CAGR of 21.92% during the same period.
Analysts are also bullish on AMAT. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $232.50 set by analysts indicates a potential upside of 13.38% from current levels.
As of the second quarter of 2024, Applied Materials Inc. (NASDAQ:AMAT) was held by 77 hedge funds, according to Insider Monkey’s database. Parnassus Investments stated the following regarding Applied Materials Inc. (NASDAQ:AMAT) in its second-quarter 2024 investor letter:
“Applied Materials, Inc. (NASDAQ:AMAT) is the world’s largest supplier of wafer fabrication technologies used in semiconductor manufacturing. The company reported solid earnings for the quarter, and investors believe Applied Materials should continue to benefit from accelerated industry spend due to AI and share gains.”
6. Intuit Inc. (NASDAQ:INTU)
TTM Net Income: $2.96 Billion
5-Year Net Income CAGR: 13.73%
Number of Hedge Fund Holders: 82
Intuit Inc. (NASDAQ:INTU) is an American multinational software company that specializes in financial technology solutions. The company offers popular products like TurboTax for tax preparation, QuickBooks for small business accounting, Credit Karma for personal finance management, and Mailchimp, which is an email marketing and automations platform. The company is also focusing on integrating advanced technologies, such as artificial intelligence, to enhance user experiences and streamline financial processes.
The company is utilizing its early investments in artificial intelligence to enhance its financial technology offerings. Intuit Inc. (NASDAQ:INTU) has made strong progress with Intuit Assist, a generative AI-powered assistant that aims to simplify financial tasks for millions of consumers and small businesses. The company is accelerating its investments to launch Intuit Assist at scale.
Intuit Inc. (NASDAQ:INTU) is committed to leveraging its extensive data and AI capabilities to provide seamless experiences across its platforms, including TurboTax and QuickBooks Live. In fiscal year 2024, TurboTax Live revenue increased by 17% and QuickBooks Live new customers more than tripled. The total online payment volume facilitated by Intuit Inc. (NASDAQ:INTU) grew by 20% year-over-year, and the company helped small businesses access $2.4 billion in financing through QuickBooks Capital.
The company is making investments to digitize the financial experience for users, from estimates and invoicing to seamless payments, as it aims to deliver best-in-class solutions.
According to Insider Monkey’s Q2 2024 database, 82 hedge funds held stakes in Intuit Inc. (NASDAQ:INTU), an increase from 77 hedge funds in Q1 2024. This growth in institutional investors’ interest reflects a rising confidence in the company’s potential and performance.
Intuit Inc. (NASDAQ:INTU) has achieved impressive growth over the last five years, with its revenue increasing at an average rate of 19.14% each year. Meanwhile, the company’s net income has also risen, growing at an average rate of 13.73% during the same period.
5. The Progressive Corporation (NYSE:PGR)
TTM Net Income: $6.89 Billion
5-Year Net Income CAGR: 16.24%
Number of Hedge Fund Holders: 89
The Progressive Corporation (NYSE:PGR) is an American insurance company that ranks among the top 5 on our list of the 8 most profitable large-cap stocks to invest in. The company offers various types of insurance, including car, home, and commercial coverage. It is the second-largest personal auto insurer in the US. The corporation is also a leading seller of commercial auto, motorcycle, and boat insurance.
During the second quarter, The Progressive Corporation (NYSE:PGR) continued to invest in enhancing its commercial auto and business owners’ policy (BOP) products. The company rolled out a new commercial auto product model in two additional states and is on track to introduce it to 14 states by year-end. Currently, the BOP product is available in 46 states, with a new model launched in four states, bringing the total to 22. Additionally, The Progressive Corporation (NYSE:PGR) launched a pilot program of its new multi-product quoting system for agents, allowing them to quote both commercial auto and BOP products seamlessly, with plans for further expansion in the coming months.
The company delivered impressive second-quarter 2024 results. The Progressive Corporation (NYSE:PGR) reported a remarkable 22% increase in net premiums written year-over-year and a combined ratio of 91.9, indicating robust profitability despite significant weather-related challenges. Policies in force (PIF) were up 9% year-over-year.
With personal auto policies growing by 1.1 million since the first quarter of 2024, the corporation has successfully added 2 million policies in the first half of 2024.
The Progressive Corporation (NYSE:PGR) also experienced strong growth in its Personal Lines segment in the second quarter of 2024. The company reported net premiums written of $14.6 billion, marking a 26% increase compared to the same quarter last year. This growth was driven by a surge in new business applications, resulting in nearly 28 million policies in force by the end of the quarter.
Over the past 5 years, The Progressive Corporation (NYSE:PGR) has grown its net income at a compound annual growth rate (CAGR) of 16.24%, while its levered free cash flow has increased at a CAGR of 11.13% during the same period. Overall, the corporation’s performance reflects healthy profitability and a robust demand for its insurance offerings.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 89 hedge funds held stakes in The Progressive Corporation (NYSE:PGR). Middle Coast Investing stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q3 2024 investor letter:
“Progressive Insurance (NYSE:PGR) is the best example of both a macro and micro transition. Used car repair cost inflation (macro) hurt its profitability. It was early in raising prices to deal with that, and has been growing new policies in force much faster than competitors. As it has overcome the cost inflation issue, its profits have soared, and should continue to grow. The stock price has doubled in the last 14 months.”
4. S&P Global Inc. (NYSE:SPGI)
TTM Net Income: $3.32 Billion
5-Year Net Income CAGR: 11.00%
Number of Hedge Fund Holders: 90
S&P Global Inc. (NYSE:SPGI) is a leading provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity, and automotive markets. With its vast resources and expertise, the company helps businesses, governments, and investors navigate through complex economic landscapes.
The company is actively enhancing its offerings, particularly through its S&P Capital IQ Pro platform. The June update included significant improvements such as new benchmarks and commodity insights, along with the deployment of generative AI capabilities.
The company launched ChatAI on the Platts Connect platform, which combines extensive data and insights to support global commodity markets. Additionally, S&P Global Inc. (NYSE:SPGI) has optimized its portfolio by closing deals like the acquisition of Visible Alpha and the planned divestment of its Fincentric business. With a focus on innovation, the company continues to develop tools that enhance user experience, such as the S&P Spark Assist platform, now utilized by around 14,000 of the company’s employees.
S&P Global Inc. (NYSE:SPGI) is a strong investment choice due to its dominant position in the financial information and analytics sector. As one of the largest credit rating agencies globally, the company benefits from significant pricing power, making it a reliable source of revenue. The company’s diverse offerings, including market intelligence and commodity insights, allow it to serve a wide range of clients in various industries, ensuring steady demand for its services.
The company reported strong financial results for the second quarter of 2024, achieving a record revenue of $3.5 billion, which is a 14% increase from the same quarter in the previous year. Three of its five divisions saw double-digit growth in both revenue and operating profit. Adjusted diluted earnings per share rose by 30% to $4.04, driven by revenue growth and a margin expansion of 450 basis points.
In the Private Market Solutions segment, revenue surged by 26% to $134 million, fueled by increased demand for debt, bank loans, and CLO ratings, as well as market intelligence products like Qval and iLEVEL.
Over the last five years, S&P Global Inc. (NYSE:SPGI) has achieved a compound annual growth rate (CAGR) of 15.87% in revenue and 11.00% in net income. With a solid track record of revenue growth and profitability, the company is well-positioned to continue thriving. Its commitment to innovation and expansion in areas like data analytics further enhances its competitive edge. The company’s essential role in providing critical financial insights is expected to drive sustained growth as global markets evolve.
According to Insider Monkey’s database, 90 hedge funds held stakes in S&P Global Inc. (NYSE:SPGI) in the second quarter of 2024. This brings SPGI to the 4th spot on our list of the 8 most profitable large-cap stocks to invest in.
3. Eaton Corporation plc (NYSE:ETN)
TTM Net Income: $3.65 Billion
5-Year Net Income CAGR: 10.61%
Number of Hedge Fund Holders: 93
Eaton Corporation plc (NYSE:ETN), headquartered in Dublin, Ireland, is a global power management company that ranks among the top 3 on our list of the 8 most profitable large-cap stocks to invest in. Operating in over 175 countries, the corporation provides innovative technologies and energy-efficient solutions that help customers manage electrical, hydraulic, and mechanical power effectively. It makes products for the data center, utility, commercial, industrial, residential, machine building, aerospace, and mobility markets.
Founded in 1911 and listed on the New York Stock Exchange for over a century, Eaton Corporation plc (NYSE:ETN) has adapted to changing markets while maintaining a strong commitment to shareholder value, consistently paying dividends on its shares every year since 1923.
The company is making significant strides by expanding its operations and enhancing its product offerings. Recently, Eaton Corporation plc (NYSE:ETN) opened a new state-of-the-art campus in Helsinki, which will boost its capacity for manufacturing uninterruptible power supply (UPS) systems, including the latest energy-efficient models that are 30% smaller than competitors. Additionally, the company has signed an agreement to build a new electrical campus in Dubai, aimed at strengthening its commercial and manufacturing functions in the rapidly growing Middle East market.
Eaton Corporation plc (NYSE:ETN) is also focusing on the European data center market through a strategic investment in NordicEPOD, which designs standardized power modules for data centers. These pre-engineered systems allow for quicker market responses and are designed to operate in harsh conditions while supplying up to 2 megawatts of power.
Driven by its strategic focus on electrification and sustainability, the company is well-positioned to capitalize on the rising demand for electric power solutions across various industries. By investing in innovative technologies and expanding its product offerings in areas like e-mobility and renewable energy, Eaton Corporation plc (NYSE:ETN) is well-positioned for significant growth.
The company reported impressive results for the second quarter of 2024, achieving record sales of $6.4 billion, which reflects an 8% increase compared to the previous year. The company experienced strong organic growth of 9%, marking nine consecutive quarters of growth. Operating profit surged by 90%, and adjusted earnings per share reached a record $2.73, up 24% year-over-year. Additionally, Eaton generated a record operating cash flow of $946 million and a free cash flow of $759 million, demonstrating robust financial health.
In its e-mobility segment, Eaton Corporation plc (NYSE:ETN) saw sales rise by 18%, driven by new program launches in Europe. The company has managed to grow its bottom line by 10.61% over the past 5 years.
According to Insider Monkey’s database, Eaton Corporation plc (NYSE:ETN) has gained significant interest from institutional investors, with the number of hedge fund holders increasing to 93 in Q2 2024, up from 85 in the previous quarter.
Ave Maria World Equity Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its first quarter 2024 investor letter:
“Eaton Corporation plc (NYSE:ETN) is an intelligent power management company. The company is a long-term beneficiary in the trend towards electrification, energy transition and digitalization. Eaton is also benefiting from unprecedented global stimuli such as the Inflation Reduction Act, Infrastructure Investment and Jobs Act, the Chips and Science Act and the EU recovery plan known as the NextGenerationEU.”
2. Booking Holdings Inc. (NASDAQ:BKNG)
TTM Net Income: $5.03 Billion
5-Year Net Income CAGR: 3.89%
Number of Hedge Fund Holders: 96
Booking Holdings Inc. (NASDAQ:BKNG) is a leading online travel technology company that operates several well-known platforms, including Booking.com, Priceline, Agoda, KAYAK, and OpenTable. The company offers a wide range of travel services, allowing customers to book accommodations, rental cars, flights, vacation packages, and other travel-related services. With operations in over 200 countries and websites available in about 40 languages, the company caters to a global audience seeking convenient travel solutions.
Booking Holdings Inc. (NASDAQ:BKNG) is focused on enhancing the travel experience through several initiatives. These include advancing the company’s “Connected Trip” vision, expanding offerings, developing AI capabilities, and growing alternative accommodations.
The company’s alternative accommodation offerings at Booking.com are thriving as it benefits from an increase in available listings for travelers. By the end of Q2 2024, Booking Holdings Inc. (NASDAQ:BKNG) had around 7.8 million global alternative accommodation listings, which is about 11% higher than the same time last year.
Booking Holdings Inc. (NASDAQ:BKNG) has significantly increased its flight offerings. As a result, air tickets booked on its platforms rose by 28% compared to the previous year. This growth is largely due to the growth of Booking.com’s flight offering and strong performance in Agoda’s flight business.
By leveraging technology, such as generative AI for trip planning, the company is committed to improving customer engagement and satisfaction while also capitalizing on the expanding travel industry.
The company reported strong financial performance for Q2 2024, with room nights booked increasing by 7% compared to the same quarter last year. Booking Holdings Inc. (NASDAQ:BKNG) achieved a net income of $1.5 billion, reflecting an 18% rise from the prior-year quarter. Gross travel bookings reached $41.4 billion, a 4% increase, while total revenues grew by 7% to $5.9 billion. Additionally, the earnings per diluted share rose by 27% to $44.38.
Booking Holdings Inc. (NASDAQ:BKNG) also saw a positive cash flow situation, ending the quarter with $16.8 billion in cash and investments, up from $16.4 billion in the previous quarter. This increase was driven by approximately $2.4 billion in free cash flow generated during the quarter, despite returning about $1.9 billion to shareholders through share repurchases and dividends. Overall, the company demonstrates solid growth and financial stability.
As of the second quarter of 2024, BKNG was held by 96 hedge funds, according to Insider Monkey’s database. It ranks among the most profitable stocks.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its second-quarter 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”
1. ServiceNow Inc. (NYSE:NOW)
TTM Net Income: $1.14 Billion
5-Year Net Income CAGR: 233.07%
Number of Hedge Fund Holders: 97
ServiceNow Inc. (NYSE:NOW) is an American software company that specializes in cloud-based solutions for managing digital workflows across various industries. The company provides a comprehensive platform that utilizes artificial intelligence and machine learning to automate and optimize business processes. Its offerings are designed to help organizations improve efficiency, maximize business outcomes, enhance customer experiences, and drive digital transformation.
Through strategic collaborations and continued investment in innovation, the company has become one of the biggest players in the enterprise software market. In 2020, ServiceNow Inc. (NYSE:NOW) introduced an industry solutions strategy that focuses on creating tailored workflows for specific sectors, such as banking and telecommunications. By partnering with major firms like Deloitte and Accenture, the company is working to address unique challenges across various industries, enhancing its value proposition and expanding its market reach.
The company is actively expanding its global presence and enhancing its offerings. ServiceNow Inc. (NYSE:NOW) has announced plans to launch a UAE Cloud, hosted on Microsoft Azure, with a targeted delivery date in the first half of 2025. This new cloud service aims to support both public and private sector organizations in the UAE, providing them with advanced tools for business transformation. Additionally, ServiceNow has made a strategic investment in inMorphis, a leading ServiceNow partner, to strengthen its presence in India and the ASEAN region.
ServiceNow Inc. (NYSE:NOW) recently reported strong financial performance for Q2 2024, exceeding its guidance across all topline growth and profitability metrics. Subscription revenues reached $2.54 billion, marking a 23% increase compared to the previous year. Total revenues also grew by 22% year-over-year to $2.62 billion. As of Q2 2024, the company’s current remaining performance obligations stood at $8.78 billion, reflecting a 22% increase, while total remaining performance obligations surged to $18.6 billion, up 31% from last year. Additionally, ServiceNow recorded 88 transactions over $1 million in new annual contract value (ACV), which is a 26% rise year-over-year.
These results highlight the company’s robust growth and strong demand for its services, demonstrating its effectiveness in capturing market opportunities. The significant increase in remaining performance obligations indicates a healthy pipeline for future revenue generation.
Over the past 5 years, ServiceNow Inc. (NYSE:NOW) has recorded a compound annual growth rate of 27.02% for its top line and an astonishing 233.07% for its bottom line.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 97 hedge funds held stakes in ServiceNow Inc. (NYSE:NOW). As of June 30, Fisher Asset Management holds 1.6 million shares of the company, valued at $1.26 billion, making it NOW’s most prominent shareholder.
Overall, NOW ranks first among the 8 most profitable large-cap stocks to invest in. While we acknowledge the potential of ServiceNow Inc. (NYSE:NOW), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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