10 Worst Performing Software Stocks to Buy According to Analysts

5. Agilysys Inc. (NASDAQ:AGYS)

YTD returns: -39%

Potential Upside: 61%

Number of Hedge Fund Holders: 20

Agilysys Inc. (NASDAQ:AGYS) is a leading provider of hospitality software solutions, serving hotels, resorts, casinos, restaurants, and other service-based businesses. The company specializes in property management systems (PMS), point-of-sale (POS) solutions, inventory and procurement management, and analytics software.

Agilysys Inc. (NASDAQ:AGYS)’s ability to deliver integrated solutions tailored to the hospitality industry has made it a preferred partner for high-end establishments looking to improve guest experiences and operational efficiency. However, in its Q3 2025 earnings report, the company highlighted ongoing challenges in product revenue, particularly in hardware sales. These issues stemmed from difficulties in its point-of-sale segment, mainly within managed food services, as the company undergoes a modernization transition. This slowdown in product revenue is expected to weigh on overall growth in 2025. The weak outlook triggered a negative market reaction, leading to a 20% drop in the stock on January 22, the day after the earnings announcement. Investor sentiment has remained weak since then, with the stock down 39% year-to-date.

Despite the disappointing results, analysts at Oppenheimer maintained their Outperform rating on Agilysys Inc. (NASDAQ:AGYS) but lowered their price target from $150 to $135. They remain optimistic due to the company’s strong subscription business, as well as management’s positive outlook on bookings, attach rates, and pipeline momentum.