12 Best Tech Stocks to Buy Right Now Under $10

Page 11 of 11

1. Alight Inc. (NYSE:ALIT)

Current Market Price: $6.62; Upside Potential: 66%

Number of hedge funds: 40

On the top of our list, we have Alight Inc. (NYSE:ALIT) which is a cloud-based human capital technology and solutions provider. The company specializes in delivering cloud-based services that help organizations manage their employee benefits, payroll, and HR processes efficiently. Alight’s platform integrates data analytics and artificial intelligence to enhance decision-making and improve employee engagement.

In November 2024, Alight Inc. (NYSE:ALIT) reported its Q3 2024 earnings with revenue of $555 million, reflecting a slight decrease of 0.5% year-over-year (YoY). Gross profit increased to $200 million with a margin of 36%, and adjusted EBITDA rose to $118 million with a margin improving by 90 basis points to 21.3%. The company experienced 18.6% growth in Business Process as a Service (BPaaS) revenue, supported by new wins and expanded relationships with Hewlett Packard Enterprise, Nokia, and Siemens. Management expressed optimism about improving financial performance and strong momentum in the commercial segment, leading to a slight increase in FY 2024 revenue guidance.

While we acknowledge the potential of ALIT to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ALIT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 11 of 11