Why ServiceNow (NOW) is a Top Growth Stock for the Long-Term

ServiceNow (NOW) is highlighted by Zacks Investment Research as a top long-term growth stock, earning a Zacks #2 (Buy) Rank, a 'B' VGM Score, and an 'A' Growth Style Score. The cloud-based workflow digitization platform, utilized by over 85% of Fortune 500 companies, is projected for 18.8% year-over-year earnings growth this fiscal year, with its FY25 consensus estimate recently increasing to $16.54 per share and a historical average earnings surprise of +6.6%. This robust fundamental and scoring profile positions NOW as a compelling opportunity for growth-oriented investors.

Analysis

ServiceNow (NOW) is presented as a strong growth candidate, underpinned by a Zacks #2 (Buy) rank combined with a top-tier 'A' Growth Style Score. The company's fundamental strength is evidenced by the significant market penetration of its Now Platform, which is utilized by over 85% of the Fortune 500 and nearly 60% of the Global 2000 enterprises, indicating a deeply entrenched market position. This is supported by a robust financial outlook, with forecasted year-over-year earnings growth of 18.8% for the current fiscal year. Analyst sentiment is positive, reflected in the recent upward revision to the fiscal 2025 Zacks Consensus Estimate, which now stands at $16.54 per share. Furthermore, ServiceNow has a demonstrated history of executional excellence, consistently delivering an average positive earnings surprise of +6.6%, which lends credibility to its ongoing growth narrative and management's ability to outperform expectations.

Key Decisions for Investors

• Given the 'A' Growth Score and projected 18.8% earnings growth, investors with a growth-focused mandate should consider the stock's strong fundamental profile.
• Investors should monitor upcoming earnings reports to see if the company can maintain its historical average earnings surprise of +6.6%, as a continuation of this trend would reinforce the positive thesis.
• Pay close attention to further analyst estimate revisions for fiscal 2025, as continued upward adjustments could act as a catalyst for future share price appreciation.