1 Stock Up 19% in 2 Weeks That Still Looks Like a Great Buy Right Now

Many investors may be afraid to buy a stock after it has risen sharply. After all, if a stock has already climbed more than 10% in just a few trading days, how much higher could it go?

In fact, some of the best growth stocks can continue climbing for a long time, and one stock, up 19% in just the past couple of weeks, still looks like an incredible bargain after its recent move higher.

ServiceNow (NYSE: NOW) has been soaring since the last week of February. The move comes after the company saw shares tank as the market sold off many software stocks since last October. While fears about artificial intelligence's (AI) impact on the industry remain, ServiceNow stands out as a strong buy that can keep climbing higher from here.

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What's driving shares higher?

ServiceNow isn't the only software company moving higher in recent days. Since Feb. 23, the iShares Expanded Tech Software ETF has also been up 14%, indicating most software stocks have seen significant moves higher. The recovery comes as investors try to rerate software companies' future earnings as analysts digest earnings reports from across the sector.

ServiceNow's earnings, reported in late January, were impressive. Subscription revenue grew 19.5% year over year, exceeding management's guidance. Additionally, its remaining performance obligations increased by 22.5%, indicating its pipeline is growing even faster.

However, management guided for revenue growth of just 19.5% to 20% on a constant-currency basis, including the impact of recent acquisitions. That stoked investor fears that AI is cutting into revenue growth and sent shares down after earnings.

But CEO Bill McDermott and the rest of the executive team are showing extreme optimism around the stock. McDermott bought $3 million worth of the stock last month while the rest of the executive team halted automated selling plans at the current stock price. McDermott expressed his belief that the company could be worth $1 trillion one day. It's worth just $126 billion today.

That belief is bolstered by ServiceNow's ability to show artificial intelligence is an opportunity, not a threat. The company's Now Assist AI suite reached $600 million in annual contract value at the end of 2025, exceeding management's goal. This year, management expects that number to exceed $1 billion.

What's more, AI Control Tower deal volume tripled sequentially in the most recent quarter. The platform puts ServiceNow's AI capabilities at the center of a business's software ecosystem. Combining first- and third-party AI agents through the platform puts ServiceNow in the driver's seat for customer engagement.

Even as the broader software segment recovers, ServiceNow stands out as an excellent opportunity thanks to its position as an industry standard across its expansive product portfolio, with many customers using more than one of its services. That significantly increases switching costs for its customers, keeping them coming back and spending more each year.

With the stock trading for 29 times earnings, it still looks like a great value, considering how quickly it continues to grow. So, even after climbing 19% in just two weeks, there's still time to buy ServiceNow stock.

Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.