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

1. AvidXchange Holdings Inc. (NASDAQ:AVDX)

Ent. Value: $1.4 billion; Market Cap: $1.8 billion

EV to Market Cap: 0.8

Share Price: $8.55

Number of Hedge Fund Holders: 34

AvidXchange Holdings Inc. (NASDAQ:AVDX) is a software-as-a-Service (SaaS) based company that provides cloud-based accounts payable (AP) automation and payment solutions tailored for mid-sized businesses. Its platform helps clients across industries such as real estate, construction, and financial services streamline invoice processing and electronic payments, leading to lower costs and greater efficiency.

On March 14, Bloomberg reported that AvidXchange Holdings Inc. (NASDAQ:AVDX) is considering a potential sale after attracting takeover interest, even from private equity firms. The company has hired Financial Technology Partners to assess its options. However, discussions are still in progress, and the company may or may not decide to go ahead with the deal, especially given recent market volatility.

AvidXchange Holdings Inc. (NASDAQ:AVDX)’s stock was up nearly 14% as the market reacted positively to the news. Following the news, Robert W. Baird analyst David Koning, who has a Buy rating on the shares, called the takeover interest as expected given the company’s steady, though slightly slower growth, healthy margins, and a strong balance sheet. He estimates a potential acquisition price between $12 and $13 per share, factoring in AvidXchange’s net operating losses and cash position. Even with valuation under pressure, the analyst is positive about the B2B payments sector and AvidXchange’s potential for long-term growth. His confidence is backed by the launch of new products and improving economic conditions. He maintained his Buy rating with a price target of $12. As of Q4 2024, the company held $389 million in cash and equivalents against only $9.1 million in long-term debt, giving it a strong net cash position.

While we acknowledge the potential of AVDX to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVDX 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 30 Best Stocks to Buy Now According to Billionaires.

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