10 Worst Performing IT Services Stocks to Buy According to Analysts

5. ASGN Inc. (NYSE:ASGN)

YTD Returns: -21%

Potential Upside: 51%

Number of Hedge Fund Holders: 24

ASGN Inc. (NYSE:ASGN) provides IT services and solutions to both commercial enterprises and government organizations. The company supports clients in developing, implementing, and managing essential IT and business solutions through its comprehensive service offerings.

On February 4, ASGN Inc. (NYSE:ASGN) announced its acquisition of TopBloc LLC for $340 million in cash and equity. TopBloc specializes in deploying Workday software and offers on-demand support in key areas such as human capital management, financial management, and payroll services. This acquisition is intended to enhance ASGN’s ability to deliver ERP solutions via the Workday platform while also unlocking cross-selling opportunities across its existing customer base.

In response to the announcement, Canaccord Genuity analyst Joseph Vafi highlighted ASGN’s strategic progress and financial resilience. While acknowledging that the company’s revenue growth has been relatively moderate, he emphasized its strong profit margins and ongoing transition toward higher-value consulting services. The acquisition of TopBloc further solidifies ASGN’s presence in the ERP market. Additionally, the analyst highlighted the company’s stock buyback program and disciplined M&A approach as positive factors in his assessment. He reiterated his Buy rating on the stock with a price target of $115.