10 Best Mid Cap Tech Stocks to Buy Now

7. Descartes Systems Group Inc. (NASDAQ:DSGX)

Upside Potential: 22.16%

Market Capitalization: $8.54 Billion

Number of Hedge Fund Holders: 22

Descartes Systems Group Inc. (NASDAQ:DSGX) is a company that provides cloud-based software and logistics solutions on a subscription basis. It helps companies manage their supply chains, shipping, and transportation efficiently. Their software helps companies improve the movement of goods, including customs compliance, routing, shipment tracking, and warehouse management.

Descartes Systems Group Inc. (NASDAQ:DSGX) has been able to grow steadily and improve margins. It has grown at an annual rate of 14% per year over the last five years. Meanwhile, its net margin stands at 22% as of the fiscal year 2024. The company reported a 13% increase in Q4 revenue on a year-over-year basis, which reached $167.5 million.

Descartes Systems Group Inc. (NASDAQ:DSGX) sees significant opportunities for AI in its operations, from customer support to product development. Some of the notable AI applications include improvements in trade intelligence, fleet management, and machine learning for better decision-making. The company is also leveraging Internet of Things (IoT) and AI to improve operational efficiency and customer decision-making. It expects AI to play a large role in future growth.