ServiceNow, Inc. (NYSE:NOW) is one of the programs Stocks Jim Cramer Named as Potential Undervalued Buys. Cramer highlighted the company’s expected earnings growth during the episode, as he said:
ServiceNow, which we had on the show last week, is also starting to look good, down more than 50% from its peak. Its profits are expected to rise 19% this year. And while you’d still have to pay a slight premium with shares selling for nearly 24 times this year’s numbers, that’s down from nearly 70 times forward earnings at the end of 2024. ServiceNow also announced a big buyback last week, including an accelerated $2 billion buyback. Therefore, you should assume that they will be there shopping along with you.
ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through artificial intelligence, automation, low-code tools, analytics and a suite of IT, security, customer service and employee experience products. Cramer talked about the stock during the February 2 episode, commenting:
ServiceNow was the fourth worst performer with a decline of almost 24%… Now, I think ServiceNow really stands out as an example of what’s happening to the group. We just had President and CEO Bill McDermott on the show last Wednesday night after ServiceNow reported a very good quarter. It was an advance across all key lines, mostly better-than-expected guidance for the current quarter and full year. Honestly, I did think the numbers would allow the stock to recover. I thought I would at least get some momentum, but I was wrong. Instead, it plummeted 10% compared to the figures, almost 10%.
While we recognize NOW’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None. This article was originally published in privileged monkey.