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Yahoo
29-04-2025
- Business
- Yahoo
Global Payments Inc. (GPN): Among the Oversold Tech Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Global Payments Inc. (NYSE:GPN) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A payment terminal in action with customers apart of the experience. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Global Payments Inc. (NYSE:GPN) is a US-based financial technology company that provides payment processing and software solutions to more than 4.6 million merchants, 1,500 financial institutions, and billions of consumers worldwide. In short, GPN technology securely connects businesses, banks, and customers to process payments made with cards, phones, or online systems. Global Payments Inc. (NYSE:GPN) delivered strong financial performance in 2024, achieving 6% adjusted net revenue growth, record adjusted operating margins, and double-digit adjusted EPS growth, despite incremental FX headwinds. The company generated approximately $3 billion in adjusted free cash flow and returned $1.8 billion to shareholders, including proceeds from the recent divestiture of AdvancedMD. The company made significant progress in its transformation agenda, including consolidating technology teams under common leadership, centralizing operating functions, and unifying the Merchant Solutions business into a homogeneous worldwide organization. Looking ahead to 2025, Global Payments Inc. (NYSE:GPN) expects constant currency adjusted net revenue growth of 5% to 6% over 2024, excluding dispositions, with annual adjusted operating margin expansion of approximately 50 basis points. The company has increased its operational transformation target to more than $600 million of annual run-rate operating income benefit by the first half of 2027, up from the initial outlook of more than $500 million. The company plans to return approximately $2 billion to shareholders during 2025 and will continue executing its transformation initiatives, including the global rollout of its Genius platform and further streamlining of operations. With ambitious plans and at least 71 hedge funds owning the stock, GPN secures its second place on our list of oversold stocks to invest in. Overall, GPN ranks 2nd on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of GPN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GPN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Clearwater Analytics Holdings, Inc. (CWAN): Among the Oversold Tech Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A wide shot of a large financial data center. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-based platform for automated investment accounting, performance measurement, compliance monitoring, and risk analytics. The company serves large financial and government institutions, managing more than $8 trillion in assets through its platform. The company also incorporated AI capabilities to improve client interactivity and data analysis. CWAN ranked seventh on our recent list of 10 Best Debt Free Mid Cap Stocks to Buy Now. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered solid results in the most recently reported Q4 2024, with revenue growing 27.7% YoY, and record-high annual recurring revenue generated, showing a 25.3% increase on a YoY basis. The company also significantly improved its net revenue retention rate to 116%, and achieved a record-high gross margin, leading to a 33% EBITDA margin in the quarter. These impressive results were driven by successful cross-selling initiatives, strong client retention rates (at 98%), effective pricing strategies, as well as ongoing international expansion. Looking ahead to 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) expects revenue to grow between 19% to 20% YoY, with EBITDA projected to further expand at 34% for the fiscal 2025. The company continues to focus on multiple growth drivers, including new logo acquisition in North America, international expansion, back-to-base investments, and strategic partnerships, while maintaining its commitment to operational excellence and innovation. Despite negative year-to-date stock price performance, hedge funds have strong conviction in CWAN, making it one of the best oversold stocks on our list. Overall, CWAN ranks 3rd on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of CWAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CWAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Fiserv, Inc. (FI): Among the Oversold Tech Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Fiserv, Inc. (NYSE:FI) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A close-up view of a hand writing out checks from a company checkbook. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Fiserv, Inc. (NYSE:FI) provides payment solutions and technology like digital banking platforms, card issuing and processing, merchant acquiring, and point-of-sale systems, primarily for banking and fintech clients. The company's key products include Clover, a point-of-sale platform for small businesses, and Carat, an omnichannel commerce solution for large enterprises. Fiserv, Inc. (NYSE:FI) reported a strong start to 2025 with total company organic revenue growth of 7%, adjusted EPS up 14% YoY, and adjusted operating margin expanding by 200 basis points. The company maintained its full year 2025 guidance of 10-12% organic revenue growth and 15-17% adjusted EPS growth, despite anticipating slower growth in the first quarter. The quarter was marked by several strategic acquisitions, all aimed at expanding the company's global footprint and capabilities. Fiserv, Inc. (NYSE:FI) demonstrated strong momentum in key strategic initiatives, with Clover revenue growing 27% and expanding to 13 countries, while adding 33 new financial institutions as merchant partners in Q1. The merchant referral partnerships now include 40 of the top 100 financial institutions, with several large opportunities in the pipeline. The company also made progress in its embedded finance capabilities and launched new products, including the upcoming Clover Hospitality solution for upper-market restaurants. Management expressed confidence in the company's positioning, noting that amid market disruption, clients are increasingly turning to Fiserv for its scale, stability, and technical prowess. Overall, FI ranks 1st on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of FI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Tyler Technologies, Inc. (TYL): Among the Oversold Tech Stocks to Buy According to Hedge Funds
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Tyler Technologies, Inc. (NYSE:TYL) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A close-up of a businessman in corporate attire discussing financial management solutions with a client. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Tyler Technologies, Inc. (NYSE:TYL) provides integrated software and technology services for the public sector. Its product portfolio includes solutions for courts and justice, public safety, property appraisal and tax, financial management, permitting and licensing, records management, and K-12 education. The company offers both on-premises and cloud-based deployments, with a strategic collaboration with Amazon Web Services for cloud hosting services. Tyler Technologies, Inc. (NYSE:TYL) reported strong Q1 2025 results, exceeding expectations across key revenue and profitability metrics with double-digit total revenue growth driven by robust subscription revenues. SaaS revenues grew 21%, marking their 17th consecutive quarter of SaaS growth of 20% or more, while transaction-based revenues increased 18.5% due to higher transaction volumes and increased adoption of new services. The company's non-GAAP operating margin expanded to 26.8%, benefiting from cloud operations efficiencies, a shift to higher-margin SaaS revenues, and favorable operating expense trends. Despite unpredictable macro conditions, Tyler Technologies, Inc. (NYSE:TYL) maintains a positive outlook, emphasizing the stability of its business model and the resilience of the public sector market. At least 44 hedge funds showed conviction and owned TYL stock at the end of Q4 2024, making it one of the best oversold stocks to buy according to hedge funds. The public sector market remains active with stable RFP and sales demonstration activity at elevated levels, though some procurement processes have slowed due to consultant-driven processes and additional macro environment scrutiny. The company's leadership expressed confidence in its position, noting that local government revenues are primarily funded by reliable property taxes and utility revenues, while state-level transaction revenues are largely self-funded through user fees that are generally not impacted by economic conditions. Overall, TYL ranks 5th on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of TYL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TYL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
SS&C Technologies Holdings, Inc. (SSNC): Among the Oversold Tech Stocks to Buy According to Hedge Funds (READY TO EDIT1)
We recently published a list of 11 Oversold Tech Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) stands against other oversold tech stocks to buy according to hedge funds. Technology stocks have been among the best performing in the last 15 years. The technology sector has consistently outperformed the broad US market since the aftermath of the 2008 financial crisis, with particularly strong periods being the 2014-2021 and the 2023-2024. Technology stocks tend to perform well during economic expansions and periods of low interest rates, which stimulates the widespread adoption of technological advancements. During such periods, tech companies tend to trade at hyper-expensive valuations, which reflect the strong growth opportunities ahead. Many investors thus believe they become too overvalued, avoid having exposure to them, and consequently miss out on returns. The key point when it comes to technology stocks is that their valuations plummet instantly upon the slightest macroeconomic uncertainty and turmoil, which means that the best moment to acquire technology stocks is when they become oversold, and when fear dominates the market. We believe that we are currently at an opportune time to increase exposure to technology, because it is the most beaten down sector year-to-date. Yardeni Charts show that the S&P Information Technology is currently trading at 24.4 forward P/E, much below the late 2024 peak around 30, marking an almost 20% decline in valuations (for comparison, the broad market's valuation contracted by only 10%). Technology stocks haven't been as cheap since 2023, when the Artificial Intelligence megatrend was just proliferating. Furthermore, the same source showed that the sector has experienced 2 consecutive quarters of negative revisions in earnings expectations, which means that Wall Street analysts have already priced in any short-term headwinds, reducing the chances of further negative surprises in the near future. In other words, the best possible scenario for buying is when both Wall Street and the market are pessimistic, which translates into weak expectations plus cheap valuations, and that's exactly what appears to be happening with the technology sector right now. READ ALSO: 11 Oversold Blue Chip Stocks to Buy According to Hedge Funds To sum up, we concluded that prices for technology stocks are lower now. The only question that remains to be answered is whether the macroeconomic background will be favorable enough to facilitate a new bull run for the tech sector. First, as we already mentioned above, technology stocks thrive under a low interest-rate environment – recent comments by a Federal Reserve official hint towards higher odds that interest rates will be cut as early as June. As a result, yields of short to intermediate-maturity US government bonds fell significantly last week, in anticipation of lower rates. This raises the probability that technological tailwinds will unmute, and businesses will spend more on AI, cloud computing, cybersecurity, and other tech projects that require large cash outlays and are sensitive to financing costs. We are also pleased to find confirmation of our hypothesis from leading consultants such as Deloitte. Here's an excerpt from their recent 2025 technology industry outlook report: 'Despite recent uncertainty and economic turbulence, the technology industry appears poised for growth in 2025, aided by increased IT spending, AI investments, and a renewed focus on innovation. Some analysts project that global IT spending will grow by 9.3% in 2025, with data center and software segments expected to grow at double-digit rates. Worldwide spending on AI is anticipated to grow at a compound annual growth rate of 29% from 2024 to 2028. Although the tech layoff trend persisted in 2024, reductions appeared to slow compared to 2023.' With that being said, the current market setup appears extremely favorable for investing in oversold tech stocks that could recover some or all of the value lost during the recent Trump Tariff Turmoil. With tariff exceptions granted to electronic products, and President Trump hinting towards the possibility that China tariffs will come down from the current unsustainable 145%, the outlook for the technology sector is getting brighter. A financial advisor providing consultation to a client to help manage their portfolio. To compile our list of oversold tech stocks, we used a screener to identify technology sector stocks that have a Relative Strength Index (RSI) below 40. We then compared the list with Insider Monkey's proprietary database of hedge funds' ownership and included in the article the top 11 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) offers a comprehensive suite of solutions for financial and healthcare institutions, including fund administration, investment accounting, risk and compliance analytics, and healthcare information processing. The company is notorious for its global scale, serving over 22,000 clients and managing over $45 trillion in assets on its platforms. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) reported strong Q1 2025 results with adjusted revenue of $1.514 billion, up 5.5%, and adjusted diluted earnings per share of $1.44, representing an 8.3% increase. The company achieved an adjusted consolidated EBITDA of $591.9 million, up 6.3%, with a margin of 39.1%, and demonstrated robust organic revenue growth of 5.1%. Notable performance came from the GlobeOp segment with 10.3% organic growth, driven by positive trends in private markets and retail alternatives, while the Wealth and Investment Technologies segment showed continued strength, and Global Investor and Distribution Services met its targets. Looking ahead, SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) is making significant strides in international expansion, particularly with the strategic Insignia Financial agreement in Australia and winning additional mandates in the region. The company is also advancing its AI capabilities, having launched a global governance-first AI platform and introduced 20 new AI agents capable of handling complex unstructured content. Despite operating in an environment of geopolitical and economic uncertainty, SSNC remains one of the best oversold stocks to consider as management stays confident in its business model and has raised its full-year 2025 guidance, expecting 4.4% organic revenue growth at the midpoint of its guidance. Overall, SSNC ranks 4th on our list of oversold tech stocks to buy according to hedge funds. While we acknowledge the potential of SSNC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SSNC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
