We recently published 10 Stocks on Jim Cramer’s Radar. ServiceNow Inc. (NYSE:NOW) is one of the stocks that on Jim Cramer’s radar.
Enterprise workflow software services provider ServiceNow Inc. (NYSE:NOW)’s shares are down by 46% over the past year and by 27.8% year-to-date. Banking giant Goldman Sachs added the firm to its US Conviction List in February with a $216 share price target and a Buy rating. Goldman pointed out that ServiceNow Inc. (NYSE:NOW) could grow by 20% year-over-year through 2029 by focusing on growth in untapped areas. Truist also discussed the firm in February. It cut the share price target to $175 from $240 and kept a Buy rating on the stock. The financial firm outlined that ServiceNow Inc. (NYSE:NOW) and other stocks in the sector were being pressured by investor sentiment about terminal value instead of fundamentals. Truist added that software stocks that had previously relied on a seat-based model for their services were not performing well and therefore could see greater tailwinds stemming from AI. Cramer discussed ServiceNow Inc. (NYSE:NOW) in the context of AI firm Anthropic’s lead in the industry:
“Now I think that ServiceNow, and I think that Salesforce are great companies. And I think that people just say, you know what, Anthropic is going to figure out what they do. But Anthropic doesn’t even. . .”
While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
