We recently published a list of Jim Cramer Says These 10 Stocks Will Go Higher in Trump Presidency. In this article, we are going to take a look at where ServiceNow Inc (NYSE:NOW) stands against other stocks that will go higher in Trump presidency according to Jim Cramer.
In a recent program, Jim Cramer celebrated the market’s rally on Donald Trump’s election victory, saying the market likes Trump.
“The market likes Donald J. Trump, and it loves a peaceful transition to the next president. We got both, and we had a monster celebration. It was a full jailbreak, and the bears never knew what trampled them. Now, though, with the inclusion of this amazing session, we have to ask: have you missed the Trump rally?”
Cramer said the answer to the question of whether you missed the Trump rally lies in the stock you have in your mind. He said many were expecting a contested election and there was a lot of uncertainty around transition. However, that did not happen and that was in itself a win for the market.
“Trump wants to cut taxes—all taxes—including corporate taxes. Some numbers go higher, estimates go higher, earnings-per-share go higher. You do need to see interest rates go low for things to really work. Someday this is going to matter. It’s hard to keep doing this and piling on debt. But party on until we see damage; that’s what it felt like to me, seems to be the mantra.”
Cramer said the market is still “oversold” as many Trump stocks underwent a massive selloff after Kamala Harris reportedly started to gain ground. However, Cramer said the polls were again proved wrong.
Cramer then talked about the stocks that investors can buy to ride the Trump rally.
READ ALSO: Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks.
For this article we watched the latest programs of Cramer and picked stocks he believes can go higher under the Trump presidency. With each company, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? 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).
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ServiceNow Inc (NYSE:NOW)
Number of Hedge Fund Investors: 97
A caller recently told Jim Cramer how he bought ServiceNow Inc (NYSE:NOW) after Cramer’s recommendation and bagged some profits. Cramer commented:
“New price target. I’m going to say the stock goes to 1200. It is at 994, it is going to 1200. It is probably one of the best stocks in this entire market to buy. You have my blessing to keep it until $1200.”
ServiceNow Inc (NYSE:NOW) impressed the market with strong Q3 results. But can the stock keep going higher? ServiceNow Inc (NYSE:NOW) recently launched its Now Platform Xanadu, adding more than 350 out-of-the-box generative AI capabilities to Now Assist. These features include data visualization automation, chat- and email-reply generation, change summaries, and LLM-based proactive prompts in Virtual Agent.
ServiceNow Inc (NYSE:NOW) also released RaptorDB Pro, a high-performance database enabling customers to centralize operational data and analytics onto ServiceNow platforms. These platforms are expanding the company’s abilities in the IT market.
ServiceNow Inc (NYSE:NOW) bulls believe the company’s organic revenue growth after fiscal 2025 could clock in between 20% to 22%. ServiceNow Inc (NYSE:NOW) can also expand its margins by 250bps annually, driven by 100bps from gross profits, 100bps from R&D reductions, and 50bps from SG&A leverage.
NOW will also benefit from organic growth catalysts. Grand View Research predicts that the global information technology service management (ITSM) market will grow at a CAGR of 9.3% from 2023 to 2030.
Overall, NOW ranks 5th on our list of stocks that will go higher in Trump presidency according to Jim Cramer. While we acknowledge the potential of NOW, our conviction lies in the belief that under the radar 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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Disclosure: None. This article is originally published at Insider Monkey.