Jim Cramer and Analysts Like These 10 Stocks

5.  ServiceNow, Inc. (NYSE:NOW)

Average Price Target Upside: 38.39%

Number of Hedge Fund Holders: 110

Cramer was bullish enough on ServiceNow, Inc. (NYSE:NOW) in January that he recommended his viewers buy the shares post its earnings report as he noted that the stock tends to go down after it reports.

“Now, ServiceNow, let’s listen to this. This is the quarter where ServiceNow will report a number that sends the stock down in after-hours trading and you have to buy it right then and there because it will rally huge at the opening the next day, Thursday. Time and time again this happens, it goes down after the evening report. Why?

It’s pushed down by short sellers trying to keep it down and then it opens up gigantically when the shorts again are routed the next day. ServiceNow doesn’t even know how to miss. Set your clock to this one at least until some company actually attempts to compete with their artificial intelligence savvy. Buy that dip and I almost never advise buying after hours, but I’m doing it right now for ServiceNow.”

ServiceNow, Inc. (NYSE:NOW) is a leading provider of digital solutions that help businesses automate workflows and enhance operational efficiency across multiple enterprise functions. On February 19, Redburn Atlantic analyst Omar Sheikh started coverage of NOW stock with a Buy rating and a price target of $1,140.

Polen Capital 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.”