Santa Clara, California-based ServiceNow, Inc. (NOW) provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. With a market cap of around $216 billion, ServiceNow has helped 85% of the Fortune 500 companies to modernize their technology with its digital-first business model which enables them to innovate at scale and speed.
Companies worth $10 billion or more are generally described as "large-cap stocks," ServiceNow fits this bill perfectly. Moreover, the company serves organizations of every size and industry to put AI to work for people. ServiceNow AI Agents can learn, reason, take action, and make decisions autonomously while remaining under the guidance of users.
ServiceNow recently touched its all-time high of $1,072.84 on Nov. 26 and is currently trading 2.3% below that peak. ServiceNow’s stock prices have surged 22.6% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 7.7% gains during the same time frame.
When compared on a longer-term basis, NOW performance looks even more impressive as the stock has soared 48.4% on a YTD basis and 51.8% over the past 52-week period, outpacing DOWI’s 18.8% gains in 2024 and 23.6% returns over the past year.
To confirm the bullish trend, ServiceNow has consistently traded above its 200-day moving average since early June and 50-day moving average since late July.
ServiceNow’s stock prices surged 5.4% after the release of its impressive Q3 earnings on Oct. 23. The company has observed strong demand and outstanding business momentum driven by its existing and new customers doubling down on their investments in the company as the AI platform for business transformation. This has led to the company outpacing analysts’ topline and earnings estimates. ServiceNow’s total revenues have soared over 22.2% year-over-year to $2.8 billion. Meanwhile, its adjusted net income increased over 28.5% year-over-year to $775 million. Observing the robust Q3 results, the company raised its full-year topline guidance, further bolstering investors' confidence.
ServiceNow has outperformed its peer Salesforce, Inc.’s (CRM) 25.8% gains on a YTD basis and 27.3% returns over the past year.
Among the 34 analysts covering the NOW stock, the consensus rating is a “Strong Buy.” As of writing the stock is trading above its mean price target of $1,010.15.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 3 Energy ETFs to Invest in the Data Center Power Surge
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