Core Insights - ServiceNow, Inc. (NYSE:NOW) is recognized for its strong earnings growth potential over the next five years, with analysts maintaining positive ratings and significant upside potential for the stock [1][2]. Group 1: Analyst Ratings and Price Targets - Oppenheimer analyst Brian Schwartz reaffirmed a 'Buy' rating on ServiceNow, with a price target of $200, indicating a potential upside of 68% [1]. - Evercore ISI maintained an 'Outperform' rating with a price target of $225, citing stable demand and growing adoption of the Now Assist AI offering [2]. Group 2: Company Performance and Market Position - Despite a nearly 28% decline in stock price over the last three months, Evercore ISI expects strong fourth-quarter results that will demonstrate the company's solid growth at scale [2]. - ServiceNow is positioned as a provider of cloud-based solutions for digital workflows, offering a diverse range of products including customer service management and field service management applications [4]. Group 3: Future Projections and Valuation - The company's AI strategy is projected to exceed $1 billion in annual recurring revenue (ARR) by 2026, with steady demand and increasing interest noted in partner surveys [3]. - ServiceNow's current valuation stands at approximately 22.5 times enterprise value to CY27 free cash flow, presenting an appealing long-term risk/reward profile [3].

Core Insights - The article discusses the shift in investor focus towards companies with sustainable earnings power, indicating that future market returns will be driven by fundamentals rather than hype [1][2] Group 1: Market Trends - Investors are increasingly looking for a broader market rally beyond technology stocks, with industrials, healthcare, and small-cap companies expected to lead [2][3] - There is a growing caution among investors regarding high tech valuations, allowing other sectors to gain traction [3] Group 2: Stock Selection Methodology - Stocks considered for analysis have market capitalizations exceeding $2 billion, with a focus on those forecasted to have EPS growth over the next 5 years and a return on equity above 20% [5] - The stocks are ranked based on the number of hedge fund holdings, utilizing Insider Monkey's database as of Q3 2025 [5][6] Group 3: Company Highlights - ServiceNow, Inc. (NYSE:NOW) has a return on equity of 16.81% and is projected to have an upside potential of 68% with a price target of $200 [8] - Micron Technology, Inc. (NASDAQ:MU) has a return on equity of 22.55%, with a price target raised to $385 from $330, indicating strong demand for generative AI and a potential upcycle extending into 2027 [12][13][14]

Group 1 - ServiceNow, Inc. (NYSE:NOW) is recognized as a promising growth stock, with Goldman Sachs initiating coverage with a 'Buy' rating and a price target of $205, indicating an upside potential of approximately 44% [1] - Analysts forecast that ServiceNow will maintain an organic compound annual growth rate of 20% through 2029, driven by its expansion into Customer Relationship Management, Enterprise Resource Planning, and Human Capital Management [2] - The company is positioned to lead the agent orchestration market, with AI adoption expected to positively impact the software total addressable market over the next decade [1][2] Group 2 - ServiceNow's CEO, Bill McDermott, is noted for successfully driving the business, and the company's interest in mergers and acquisitions enhances its position in the Security space [3] - Approximately 92% of analysts covering ServiceNow recommend it as a 'Buy', and the stock's recent decline to $142.64 presents a potential investment opportunity given its long-term prospects [3] - ServiceNow provides cloud-based solutions for digital workflows, operating the Now platform and offering a variety of products, including customer service management and field service management applications [4]