10 Worst Performing Software Stocks to Buy According to Analysts

7. Manhattan Associates Inc. (NASDAQ:MANH)

YTD returns: -35%

Potential Upside: 53%

Number of Hedge Fund Holders: 34

Manhattan Associates Inc. (NASDAQ:MANH) specializes in providing software solutions that optimize supply chain management, inventory control, and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers, and other businesses. The company delivers its Manhattan Active applications via the cloud as subscription-based software-as-a-service (SaaS).

On January 29, Manhattan Associates Inc. (NASDAQ:MANH) saw its share price decline by 24% following its Q4 2024 earnings call, during which management indicated potential short-term headwinds in services due to macroeconomic volatility. In Q4, the company reported a 7% year-over-year increase in total revenue, with Cloud revenue experiencing a robust 27% YoY surge, while Services revenue remained flat. For 2025, Manhattan Associates projects topline growth in the range of 2% to 3%.

Given the sharp decline in share price, the reaction appears somewhat unexpected given the company’s solid performance and optimistic guidance for 2025. However, investor concerns over short-to-medium-term growth prospects were likely the reason after management acknowledged that approximately 10% of its customers had scaled back planned services work for the coming year.

William Blair analyst Dylan Becker views this price drop as a buying opportunity for long-term investors. He remains optimistic about the company’s strong momentum in transitioning to a cloud-based model and expects continued execution of its growth strategy under the new CEO. On February 13, the analyst upgraded the stock from Market Perform to Outperform.