Stocks On the Rise: 8 Best Stocks to Invest in Now

5) ServiceNow, Inc. (NYSE:NOW)

% Gain on a YTD Basis: ~31%

Number of Hedge Fund Holders: 97

Service Now, Inc. (NYSE:NOW) offers end-to-end intelligent workflow automation platform solutions for digital businesses.

Wall Street expects that ServiceNow, Inc. (NYSE:NOW)’s growth prospects are strongly backed by increased switching costs and integration depth. Moreover, its focus on enhancing productivity with the help of Al should further strengthen its prospects. In the recent earnings call, ServiceNow, Inc. (NYSE:NOW) highlighted that Al should have an $11 trillion impact on the economy, and market experts believe that the company remains at the forefront of this transformation. The company’s growth is expected to stem from increased enterprise investment in Al.

ServiceNow, Inc. (NYSE:NOW) continues to focus on developing domain-specific large language models in collaboration with NVIDIA and Hugging Face. Wall Street believes that the company is focused on dominating the enterprise software space by the end of the next decade. The recent innovations and strategic partnerships continue to position it for significant growth and transformation. ServiceNow and Microsoft announced a Now Assist and Copilot integration, focused on seamless enterprise experience.

On a GAAP basis, ServiceNow, Inc. (NYSE:NOW) expects subscription revenues in the range of $2,660 million – $2,665 million in Q3 2024, reflecting a YoY growth of 20% – 20.5%. Wells Fargo & Company upped its price target on the share of the company from $935.00 to $1,025.00, giving an “Overweight” rating on 7^th October.

Lakehouse Capital, a Sydney-based investment manager, released its April 2024 investor letter. Here is what the fund said:

“US-based software company,ServiceNow, Inc. (NYSE:NOW), provided another strong result, continuing its long and consistent track record of 20%-plus revenue growth combined with healthy profitability. Subscription revenues grew 25% year-on-year to $2.5 billion and free cash flow grew 47% year-on-year to $1.2 billion. The company’s core operating metrics were also impressive with remaining performance obligations growing 26% year-on-year to $17.7 billion (i.e. roughly 2x 2023 revenue) and renewal rates holding steady at 98%. Performance was evenly spread across segments, products, and geographies, with notable strength in the US federal government. The company now boasts 1,933 customers generating in excess of $1 million in Annual Contract Value (ACV), which is pleasing to see as it implies multiple solutions are involved and that the company’s platform model is increasingly resonating with customers. In our view, ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”