We recently published a list of Jim Cramer and Analysts Like These 10 Stocks. In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against other stocks that Jim Cramer and analysts like.

On Thursday, Jim Cramer, the host of Mad Money, shared his thoughts on the current state of the stock market, explaining that until things become more balanced, we are likely to continue experiencing what he referred to as the “Walmart White House” scenario. In this environment, he explained, there are consistently lower prices for the Dow Jones, the S&P, and, more “savagely”, the Nasdaq 100.

“Let’s say you believe that the stock market is a good proxy for the state of a country. It’s not perfect, but it certainly reflects how investors feel about America and its future trajectory. But judging by the averages, maybe we should be embarrassed or even mortified because we’re doing so much worse than similar countries, including countries that we’d written off years ago.”

READ ALSO: Jim Cramer Looked At These 11 Stocks Recently and 10 Stocks on Jim Cramer’s Radar

The answer, according to Cramer, lies in the fact that several European nations are faring better at this moment because these countries have central banks that have been consistently lowering interest rates in an effort to stimulate demand. On top of that, Cramer emphasized that individual European countries are taking proactive steps to jumpstart their economies.

“Now, we all know what’s keeping our stock market down. It’s being sacrificed on the altar of uncertainty and confusion about punishing our trading partners for allowing illegal immigration and fentanyl smuggling, in fairness, and also of course, tariffs.”

He reminded viewers that President Donald Trump campaigned on border security, not on boosting stock prices, so in that sense, he is following through on his promises. However, Cramer expressed frustration with how chaotic and difficult to comprehend the current policy landscape seems.

Many people, Cramer noted, believe that the market will not improve until the Dow sees a significant drop of 10 to 15%. He has been attempting to guide viewers through this difficult time, but he also questioned how much longer the disparity between the U.S. market and those of its allies can persist before it becomes too significant to ignore.

“I think we’d be in better shape if Trump rolled out the tariffs more gradually with a clear trajectory of where we’re headed rather than these endless intermittent volleys of Katyusha rockets.”

Our Methodology

For this article, we compiled a list of 73 stocks that Cramer was bullish on during episodes of Mad Money aired in January. We narrowed the list to 10 stocks that were most favored by analysts. We listed the stocks in ascending order of their average analyst price target upside as of March 6. We also mentioned the hedge fund sentiment around each stock, which was taken from Insider Monkey’s Q4 database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A team of software engineers at desks working on code for a cutting-edge cloud computing solution.

ServiceNow, Inc. (NYSE:NOW)

Average Price Target Upside: 38.39%

Number of Hedge Fund Holders: 110

Cramer was bullish enough on ServiceNow, Inc. (NYSE:NOW) in January that he recommended his viewers buy the shares post its earnings report as he noted that the stock tends to go down after it reports.

“Now, ServiceNow, let’s listen to this. This is the quarter where ServiceNow will report a number that sends the stock down in after-hours trading and you have to buy it right then and there because it will rally huge at the opening the next day, Thursday. Time and time again this happens, it goes down after the evening report. Why?

It’s pushed down by short sellers trying to keep it down and then it opens up gigantically when the shorts again are routed the next day. ServiceNow doesn’t even know how to miss. Set your clock to this one at least until some company actually attempts to compete with their artificial intelligence savvy. Buy that dip and I almost never advise buying after hours, but I’m doing it right now for ServiceNow.”

ServiceNow, Inc. (NYSE:NOW) is a leading provider of digital solutions that help businesses automate workflows and enhance operational efficiency across multiple enterprise functions. On February 19, Redburn Atlantic analyst Omar Sheikh started coverage of NOW stock with a Buy rating and a price target of $1,140.

Polen Capital stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q4 2024 investor letter:

“Similar to last quarter, ServiceNow, Inc. (NYSE:NOW) was a top relative contributor, a testament to the consistent, high-level execution they’ve demonstrated over the past several years. The company’s latest earnings report highlighted across-the-board strength, with better-than-expected results across key metrics such as renewal rates, subscription growth, average contract value growth per $1M+ customer, etc. This is a company on offense, attacking a large and growing addressable market and positioning it for a long growth runway—especially considering their early success at integrating GenAI capabilities, which should only drive increasing workflow efficiencies for customers in the years ahead.

We trimmed our positions in UnitedHealth Group, Amazon, ServiceNow, and Gartner during the quarter. ServiceNow and Gartner were valuation-related trims. With ServiceNow, we still expect 20%+ revenue and earnings growth for the foreseeable future. Still, the strong stock price performance has reduced the future return potential somewhat, and we used the proceeds to add to our Eli Lilly position.”

Overall, NOW ranks 5th on our list of stocks that Jim Cramer and analysts like. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.