10 Worst Performing IT Services Stocks to Buy According to Analysts

8. Grid Dynamics Holdings Inc. (NASDAQ:GDYN)

YTD Returns: -14%

Potential Upside: 30%

Number of Hedge Fund Holders: 15

Grid Dynamics Holdings Inc. (NASDAQ:GDYN) is a global digital engineering company that enables businesses to enhance their operations through advanced technology solutions. The company specializes in cloud computing, artificial intelligence (AI), data analytics, and software development, catering primarily to large enterprises in sectors such as retail, finance, and technology.

Grid Dynamics Holdings Inc. (NASDAQ:GDYN) is deeply positioned within the rapidly expanding digital transformation market, helping businesses migrate to the cloud, leverage data analytics, automate workflows, and develop innovative digital products to maintain a competitive edge. The company is currently experiencing significant revenue growth. In its Q4 2024 earnings report released on February 20, it posted a 28.5% year-over-year revenue increase, reaching $100.3 million—surpassing its own guidance range of $95-$97 million. This growth was largely fuelled by its Retail and Finance verticals, which expanded by 33% and 180%, respectively.

Following the earnings announcement, a Northland analyst highlighted the company’s best-in-class low-teens organic growth and an overall projected growth rate of 21% for 2025. Encouraged by Grid Dynamics Holdings Inc.’s (NASDAQ:GDYN) stronger-than-expected Q4 performance and optimistic guidance, the analyst raised the stock’s price target from $18 to $24 while reaffirming an Outperform rating.