10 Best Performing IT Services Stocks to Buy According to Analysts

2. Innodata Inc. (NASDAQ:INOD)

YTD returns: 33%

Potential Upside: 41%

Number of Hedge Fund Holders: 15

Innodata Inc. (NASDAQ:INOD) is a data engineering solutions company that helps businesses convert unstructured data into actionable insights. It specializes in AI model training, data annotation, and digital transformation services, serving a diverse range of industries.

The company had an exceptional 2024, with its share price soaring 386%, driven by growing AI-related opportunities and strong quarterly results in November. In 2025, the stock has continued its upward trend, gaining approximately 33% year-to-date. On February 20, Innodata Inc. (NASDAQ:INOD) reported its Q4 2024 earnings, posting an impressive 127% year-over-year revenue growth, surpassing its own guidance. For 2025, management has projected a 40% increase in revenue, supported by the company’s strong positioning to capitalize on the rising demand for high-quality training data and AI-driven automation as AI adoption accelerates across industries.

Following the earnings report, BWS Financial analyst Hamed Khorsand reiterated his Buy rating and raised his price target from $45 to $74. He sees the company’s guidance as a sign of sustained momentum in revenue growth. Additionally, he anticipates that Innodata Inc. (NASDAQ:INOD) could potentially reach $300 million in revenue by 2026, which, in his view, would warrant a significantly higher valuation.