10 Best Cheap Technology Stocks To Buy According to Analysts

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1. Alight Inc. (NYSE:ALIT)

Forward P/E Ratio: 9.79

Average Upside Potential: 65.66%

Number of Hedge Fund Holders: 40

Alight Inc. (NYSE:ALIT) offers cloud-based integrated digital human capital and business solutions globally. Through its Employer Solutions segment, it provides employee well-being, benefits administration, and payroll services leveraging AI. Its Professional Services segment offers cloud advisory and optimization. Its Worklife platform aims to improve employee engagement and drive organizational performance.

Its primary business revolves around its Alight Worklife platform, which offers employee benefits and well-being services. It prioritizes Annual Recurring Revenue (ARR) from long-term contracts as a key indicator of growth. In Q3 2024, the company saw recurring revenue growth improve sequentially, and BPaaS (Business Process as a Service) revenue, a core component of Worklife, grew 19% year-over-year, representing 22% of total revenue.

The company is actively pursuing ARR growth by expanding its client base, securing larger deals, and improving its win rate. It has seen an increase of over 60% in its sales pipeline and double-digit growth in win rates, leading it to expect strong double-digit ARR growth in the latter half of the year.

The company’s first major 2025 update for Worklife, released on February 4, enhances its AI-powered benefits, health, wealth, and absence management solutions. Key improvements include Microsoft Teams integration for seamless access and AI-driven recommendations, an upgraded analytics platform powered by Alight LumenAI, expanded AI automation for claims processing, and broader claim-type support.

While we acknowledge the growth potential of Alight Inc. (NYSE:ALIT), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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