ServiceNow, Inc. highlighted as a significant stock pick by Parnassus Investments

From Yahoo Finance: 2025-06-26 10:53:00

Parnassus Investments released their Q1 2025 investor letter, reporting a -2.44% return for the Parnassus Core Equity Fund, outperforming the S&P 500’s -4.27%. The Fund’s top five holdings and market performance can be found in the letter. ServiceNow, Inc. was highlighted as a significant stock pick.

ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions and had a one-month return of -0.99% with shares gaining 29.84% over the last 52 weeks. On June 25, 2025, ServiceNow, Inc. stock closed at $1,005.16 per share, with a market cap of $208.221 billion.

Parnassus Core Equity Fund added positions in Advanced Micro Devices and ServiceNow, Inc. during Q1 2025 to lessen their sector underweight. ServiceNow, Inc. is seen as a promising investment, but AI stocks are believed to offer higher returns in a shorter timeframe, with NVIDIA as a strong example.

ServiceNow, Inc. is not among the 30 Most Popular Stocks Among Hedge Funds, but 106 hedge fund portfolios held it at the end of Q1 2025. While ServiceNow shows potential, AI stocks are seen as more promising for higher returns. An undervalued AI stock with significant upside potential is highlighted in a report for investors.

Read more: Should You Invest in ServiceNow (NOW)?