10 Best US Stocks to Buy Under $10

2. Alight Inc. (NYSE:ALIT)

Share Price as of October 16: $7.29

Number of Hedge Fund Holders: 42

Alight Inc. (NYSE:ALIT) is a cloud-based human capital technology and services provider that operates through the Employer Solutions segment. Its services help businesses manage their workforce, including benefits administration, payroll processing, retirement plans, and HR consulting. Its technology platform enables businesses to streamline their HR processes, improve employee engagement, and reduce costs.

It uses AI to make HR and financial tasks easier. AI examines data sets, enabling companies to predict patterns and spot problems. The company has been investing in improving its cloud-based services, including workforce management, payroll, and benefits administration, positioning itself as a market leader in the quickly changing HR technology sector. It recently finished its two-year transition to cloud technology, which is anticipated to yield $75 million in yearly cost savings from operations, aiding in the growth of margins.

The company won new clients like UPS, Wayfair, American Honda, and Adecco Group in Q2 2024. Revenue declined 2.36% year-over-year, caused by reduced sales, lower net business activity, a decrease in project income in its Employer Solutions division, and the winding down of its Hosted business activities. Annual recurring revenue bookings were up 9% in the first half versus the prior year.

Alight Inc. (NYSE:ALIT) secured €110m in senior debt portfolio financing from Rabobank to develop 220 megawatts peak of small to medium-sized solar parks across Sweden. The first phase of the project will see the construction of three solar parks: a 4MW park in Halland, a 6MW park in Södermanland, and a 15MW park in Uppland.

The company’s collaboration with a major tech firm to integrate advanced analytics into its HCM solutions aims to enhance its offerings, allowing clients to make data-driven decisions. This partnership reinforces this company’s market position and demonstrates its commitment to innovation.

Meridian Growth Fund stated the following regarding Alight, Inc. (NYSE:ALIT) in its Q2 2024 investor letter:

“Alight, Inc. (NYSE:ALIT) is a leading cloud-based human capital technology provider of enterprise-level software that helps businesses and their employees manage critical human resources functions. Through its investments in software and automation, Alight has built a distinct advantage that allows its customers to deliver HR services at a much lower cost while providing a better experience for employees. We slightly trimmed the position early in the quarter when the stock appreciated on the announced sale of a non-strategic business unit and news that an activist investor had initiated a position. Later in the period, the stock declined when Alight announced weaker-than-expected results. We believe the softer quarter will prove to be an isolated event.”