10 Best Cheap Technology Stocks To Buy According to Analysts

5. Nice Ltd. (NASDAQ:NICE)

Forward P/E Ratio: 14.22

Average Upside Potential: 45.43%

Number of Hedge Fund Holders: 24

Nice Ltd. (NASDAQ:NICE) provides AI-driven cloud platforms for digital business solutions globally. Its offerings include CXone for customer experience, Enlighten AI engine, smart self-service solutions, and journey orchestration. It also provides solutions for agent enablement, interaction recording, digital evidence management (Evidencentral), and financial crime and compliance (X-Sight, Xceed). It uses AI and analytics for fraud prevention and AML (Anti-Money Laundering) compliance.

The company received a Buy rating from DA Davidson analysts on January 29, with a $225 price target. The analysts cited its strong financials and commitment to AI innovation for this sentiment, highlighting its investment in platforms like CXone and Enlighten. The company’s Q3 revenues were up 15% to $690 million, driven by strong AI tool demand.

Its AI-driven solutions are being adopted across diverse sectors. Fulton Bank recently implemented Enlighten-powered tools like CXone Mpower Copilot, Autopilot, and Expert to enhance customer service through AI-driven self-service and agent support. Beyond contact centers, the company’s AI capabilities are streamlining operations for organizations like the Monterey County District Attorney’s Office, which selected NICE Justice to modernize digital evidence management, becoming the 4th California prosecutor’s office to do so. Similarly, Prosper, a financial services company, partnered with Nice Ltd. (NASDAQ:NICE) for its CX transformation, using solutions like CXone Mpower and SmartReach to improve customer engagement and operational efficiency.

Broyhill Asset Management is bullish on Nice Ltd. (NASDAQ:NICE), and believes that its cloud-based software and AI integration will drive revenue growth as competitors struggle. Here’s what it said in its Q3 2024 investor letter:

“NICE Ltd. (NASDAQ:NICE) develops software to run customer contact centers. The company’s cloud-based software enables the implementation of greater functionality versus its on-premise competitors. Many of these on-premise competitors, which do not offer cloud-based products, have stopped rolling out new features. This has prompted their customers to switch to companies like Nice where they have wider access to new developments. Artificial intelligence is a large part of this shift and of our differentiated view. The market views AI as a threat to Nice’s core operations; we view it as an enabler of additional revenue streams with improved economics.”