10 Best Mid Cap Tech Stocks to Buy Now

2. Pegasystems Inc. (NASDAQ:PEGA)

Upside Potential: 45.56%

Market Capitalization: $6.26 Billion

Number of Hedge Fund Holders: 30

Pegasystems Inc. (NASDAQ:PEGA) is an application software company. It helps enterprises improve their customer engagement and assists them with data-driven decisions. Pegasystems also helps other companies manage customer relationships. It operates globally, including in the US, the Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia-Pacific.

The company’s suite of solutions can be customized to service several industries including healthcare and finance, among others. In the Fiscal Year 2024, Pegasystems’ revenue grew only 4.51% to $1.50 billion. However, analysts expect the revenue growth to accelerate.

On January 14, 2025, KeyBanc Capital Markets initiated coverage of Pegasystems Inc. (NASDAQ:PEGA) with an “Overweight” rating and a $118 price target. The brokerage cited that the company’s growth could be driven by its AI-driven product mix and its expanding cloud migration. According to brokerage, the company is trading at attractive valuations compared to its software peers.