5 Best Aggressive Growth Stocks To Buy According to Hedge Funds

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 93

Cloud infrastructure and digital workflows company ServiceNow, Inc. (NYSE:NOW) ranks second in our list of the best aggressive growth stocks to buy according to hedge funds. ServiceNow, Inc. (NYSE:NOW) is expected to register sales growth of 24% this year, according to data from Yahoo Finance. Stifel recently downgraded Datadog and said it prefers stocks like ServiceNow, Inc. (NYSE:NOW) instead. ServiceNow, Inc. (NYSE:NOW) shares have gained about 46% year to date through October 10.

Ensemble Capital Management made the following comment about ServiceNow, Inc. (NYSE:NOW) in its second quarter 2023 investor letter:

“ServiceNow, Inc. (NYSE:NOW): AI has been all over the news lately and we’ve seen some amazing results in terms of a step up in intelligence, productivity, and creativity come out of it. Nvidia, the semiconductor leader in GPUs (Graphical Processor Units), has gotten the spotlight as the hardware enabler of the technology while Microsoft, Open AI, and Google have been highlighted as the companies that brought the technology to the market.

However, the ramp in the use and application of the technology is just starting. As we’ve seen with previous innovations, the majority of the value often accrues more broadly to companies and societies who incorporate the technology into their offerings – creating new applications and enhancing existing ones – and see higher productivity and better living standards. Of course, there are also companies that get disrupted and have to figure out new business models or become obsolete.

We can think of ServiceNow’s core offering, the NOW Platform, as a “Platform of Platforms” within the enterprise, and as we’ll explain, it allows companies to stitch together their disparate, siloed software and data systems so that they can be accessible, modernized, and integrated to create more efficient workflows to unlock better customer services and increase productivity…” (Click here to read the full text)