10 Oversold Growth Stocks to Invest In

2) ZoomInfo Technologies Inc. (NASDAQ:ZI)

Forward P/E (As of 14 October): 10.7x

% Decline on a YD Basis: ~42%

Number of Hedge Fund Holders: 43

ZoomInfo Technologies Inc. (NASDAQ:ZI) offers a go-to-market intelligence and engagement platform for sales and marketing teams.

ZoomInfo Technologies Inc. (NASDAQ:ZI)’s broad go-to-market platform and its market position continue to offer strong opportunities for growth. The company’s core offerings consist of sales intelligence, B2B contact and company data, and technographics. ZoomInfo Technologies Inc. (NASDAQ:ZI) recently rolled out a new feature, called Copilot. As per the company’s management, this is expected to act as a catalyst for future growth.

This AI-powered tool focuses on enhancing the capabilities of sales and marketing professionals, providing a competitive edge. As and when businesses focus on leveraging AI to improve their sales and marketing efforts, Copilot can place ZoomInfo Technologies Inc. (NASDAQ:ZI) at the forefront of the trend. The feature aims to improve the productivity and effectiveness of sales teams. Ultimately, this can drive increased adoption and usage of the company’s platform.

ZoomInfo Technologies Inc. (NASDAQ:ZI)continues tofocus on reducing credit risk in the SMB segment. Also, it is shifting sales efforts towards mid-market and enterprise customers. As per Wall Street, the shares of the company have an average price target of $17.39.

Baron Funds, an investment management firm, released fourth quarter 2023 investor letter. Here is what the fund said:

“We were too slow to sell when the probability of a likely thesis change dictated action over inaction. Each investment is like a puzzle. Different pieces are missing in different puzzles. Our process is deliberately slow and is built on collecting and analyzing as much information as possible and building conviction over time. In a highly stressful environment with a wide range of outcomes, a recognized lack of balance with emotions running high, postponing “bad decisions” is often the correct course of action except, when there is evidence of a potential or likely thesis change on the negative side in a bear market. We were often too slow and too timid in running for the exit. For example, when a company’s revenues prove to be less sticky during times of stress despite high average retention rates. ZoomInfo Technologies Inc. (NASDAQ:ZI), the business-to-business (B2B) sales data and software provider readily comes to mind, where we made a mistake selling the stock too slowly, as we did not fully appreciate the extent to which the company oversold unused licenses to its customers, which exacerbated the slowing demand environment, creating a whiplash effect as the license inventory was used up later on, causing revenue growth to decelerate materially.”