10 Undervalued Stocks with the Highest Upside Potential

2. Alight Inc. (NYSE:ALIT)

Forward P/E Ratio: 10.59x

Upside Potential: 73%

Number of Hedge Fund Holders: 42

Alight Inc. (NYSE:ALIT) is a premier provider of human capital and cloud-based benefits to large organizations and government agencies. An expert in payroll, HR analytics, and workforce management, Alight empowers organizations to enhance performance with digital platforms powered by artificial intelligence.

Alight Inc. (NYSE:ALIT) had Q4 2024 revenue of $680 million, down only 0.3% from Q4 2023. Alight’s BPaaS segment did increase, however, with revenue up 9.8% to $146 million, or 21.5% of revenue. Gross profit came in at $271 million with a gross margin of 39.9%, compared with $270 million and a 39.6% margin in Q4 2023.

The company is introducing machine learning-based HR and payroll services to augment its workforce management. Alight has signed multiyear agreements with Fortune 500 clients with revenue guarantees. With a price target of $11, there is 73% upside at a current price of $6.36. The April 2025 next earnings release will have digital transformation and revenue growth opportunities as a focus.