10 Best Debt-Free IT Stocks to Buy Under $10

5. Semrush Holdings Inc. (NYSE:SEMR)

Ent. Value: $1.2 billion; Market Cap: $1.5 billion

EV to Market Cap: 0.8

Share Price: $9.85

Number of Hedge Fund Holders: 27

Semrush Holdings Inc. (NYSE:SEMR) offers a digital marketing software platform that helps businesses enhance their online presence (services commonly known as SEO (Search Engine Optimization)). The platform enables companies worldwide to identify and engage with the target audience through the right channels.

While the company reported robust overall growth in Q4 2024 (results announced around end-February), guidance came in a tad bit lower than consensus. However, consensus opinion on the stocks remained largely positive. In early March, Jefferies analyst Surinder Thind reaffirmed a Buy rating on SEMrush Holdings Inc. (NYSE: SEMR) with a $16 price target. Despite a slight reduction in the 2025 revenue forecast, the analyst sees strong growth in the company’s platform strategy particularly among enterprise clients, which helps balance higher churn among smaller customers.

The analyst also notes that with an EV/Revenue multiple of 2.9x, SEMrush is trading at a substantially lower valuation, creating an appealing risk/reward opportunity. The company is also expanding its SEO Enterprise platform to attract more enterprise clients and is investing in AI enhancements to strengthen its offerings. Despite the concerns over its revenue guidance and leadership changes, the analyst believes that the long-term outlook is supported by company’s continued focus on scaling, execution, and increasing annual recurring revenue (ARR).