10 Best Stocks to Buy and Hold For 2 Years

6. ServiceNow, Inc. (NYSE:NOW)

3-Years Sales Growth: 23.05% 

Number of Hedge Fund Holders: 110

ServiceNow, Inc. (NYSE:NOW) is another software technology company that ranks as one of the best stocks to buy and hold for 2 years. It is known for its Now Platform, which helps digitize workflow, automate processes, and digitally optimize enterprises using artificial intelligence. On March 11, Stifel Nicolaus analyst Brad Reback maintained a Buy rating on the stock, with a price target of $1,175.

On March 10, ServiceNow, Inc. (NYSE:NOW) announced signing a definitive agreement to acquire Moveworks. The company aims to use the front-end AI assistant of Moveworks to enhance AI adoption for every employee. Management noted that both companies together will drive significant growth in its CRM business. Moreover, during the fiscal fourth quarter of 2024, ServiceNow, Inc. (NYSE:NOW) announced impressive results. The quarterly subscription revenue grew 21% year-over-year to reach $2.86 billion, resulting in a total revenue of $2.96 billion. Notably, the company grew its more than $5 million ACV customers by 21% year-over-year, indicating its reach. The company now has 2,190 customers out of which 500 have an ACV of more than $5 million.

Polen Focus Growth Strategy 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.”