10 Hot Software Stocks with High Upside Potential

5) DHI Group, Inc. (NYSE:DHX)

% Gain Over Past 6 Months: ~77.3%

Average Upside Potential: ~51.0%

Number of Hedge Fund Holders: 12

DHI Group, Inc. (NYSE:DHX) is a software and data solutions company, focusing on connecting job seekers with employers in specialized industries. To be precise, the company provides software products, online tools, and services that deliver career marketplaces to candidates and employers. Lake Street analyst Eric Martinuzzi upped the company’s price target to $3.50 from $3, keeping a “Buy” rating. As per the firm, DHI Group, Inc. (NYSE:DHX)’s recent action to clearly segment and separate the Dice and ClearanceJobs businesses can result in a potentially accretive asset monetization.

The company has announced a strategic reorganization, restructuring its operations into 2 distinct divisions. This reorganization focuses on providing dedicated leadership for each brand —Dice (Dice.com) and ClearanceJobs (ClearanceJobs.com). As per DHI Group, Inc. (NYSE:DHX)’s Chief, Dice and ClearanceJobs remain well-placed for success when each brand operates with a strong focus and a strategy tailored to their respective markets. The restructuring is anticipated to generate annual cost savings of ~$4.0 million – $6.0 million.

The reorganization is expected to enhance DHI Group, Inc. (NYSE:DHX)’s ability to offer specialized software solutions to its clients. Therefore, through refining its software offerings and organizational structure, the company remains well-placed to witness sustained growth in the recruitment industry.