10 Worst Performing Software Stocks to Buy According to Analysts

4. Vertex Inc. (NASDAQ:VERX)

YTD returns: -39%

Potential Upside: 49%

Number of Hedge Fund Holders: 23

Vertex Inc. (NASDAQ:VERX) provides tax technology solutions, offering software and services that help businesses navigate complex indirect tax requirements. The company specializes in sales tax, value-added tax (VAT), and global tax compliance, serving enterprises across industries such as retail, manufacturing, and e-commerce.

After an impressive 98% rally in 2024, Vertex Inc. (NASDAQ:VERX) continued to perform well in early 2025, gaining 5% by February 10. However, the stock has since plunged more than 42%, in just 13 days. Analysts attribute this decline to the stock entering 2025 with a high valuation after a strong run, making it vulnerable to a pullback. Rising competition, market volatility, and weaker-than-expected organic growth in its Q4 2024 results have further contributed to the correction, leaving the stock down 39% year-to-date.

BMO Capital analyst Daniel Jester pointed out that while Q4 results were mixed, the company’s 2025 annual recurring revenue (ARR) growth target suggests challenging near-term goals. He reiterated a Market Perform rating and slashed his price target from $56 to $41. Meanwhile, Morgan Stanley analyst Chris Quintero maintained a Buy rating with a $57 price target, signaling confidence in the stock’s long-term prospects. The consensus price target stands at $48, indicating a potential upside of 49%.