1. Alight, Inc. (NYSE:ALIT)
Share Price as of December 27: $6.91
Number of Hedge Fund Holders: 40
Alight, Inc. (NYSE:ALIT) is a global technology company that provides cloud-based human capital management solutions. It offers services like employee benefits, healthcare navigation, and financial well-being, which empower organizations to enhance employee satisfaction and productivity.
ALIT is trusted by some of the world’s leading organizations, as it partners with over 50% of Fortune 500 and 70% of Fortune 100 companies. It administers employee benefits for over 35 million people and dependents and manages around $1.2 trillion in assets.
In February 2024, Alight, Inc. (NYSE:ALIT) launched its next-generation artificial intelligence (AI) engine, LumenAI, which has significantly bolstered the capabilities of its Alight Worklife platform, by allowing for personalized content delivery, automated decision support, and improved data analytics.
Alight, Inc. (NYSE:ALIT) also made some other crucial strategic decisions during last year. This included the sale of its Payroll & Professional Services business to an affiliate of H.I.G. Capital for a transaction value of $1.2 billion. The company stated that it would use a majority of the proceeds to reduce its debt. Later in the year in August, it announced the successful completion of its cloud migration program, which will result in a more simplified and efficient Alight Worklife and yield $75 million in annualized savings.
Alight, Inc. (NYSE:ALIT)’s focus on investing in modern technology and strategic restructuring has made ALIT an attractive stock for investors. According to Insider Monkey’s database for Q3 2024, 40 hedge funds had investments in the company. Wall Street analysts are also bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 60%.
During its recent Q3 2024 earnings call on November 12, the company raised its full-year revenue guidance to between $2.338 billion to $2.358 billion, reflecting confidence in the business’s future outlook. ALIT also announced the initiation of its dividend program, declaring a quarterly dividend of $0.04 per share commencing in Q4.
Overall, Alight, Inc. (NYSE:ALIT) ranks first among the 10 Best Single Digit Stocks To Buy Now. While we acknowledge the potential of human capital technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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