12 Stocks That Are About to Explode

Page 10 of 11

2. Alight, Inc. (NYSE:ALIT)

Number of Hedge Fund Holders: 42

Analysts’ Upside Potential as of March 27: 66.9%

Alight, Inc. (NYSE:ALIT) is a global provider of cloud-based human capital and business solutions, specializing in employee benefits, payroll administration, human resources outsourcing, and wealth management services. The company operates primarily through its proprietary Alight Worklife platform, delivering technology-driven solutions to simplify HR processes, enhance employee engagement, and optimize organizational efficiency. ALIT serves diverse markets across North America, Europe, and Asia-Pacific, supporting a wide range of industries, including healthcare, retail, financial services, manufacturing, and technology.

The year 2024 was transformative for Alight, Inc. (NYSE:ALIT) as the company completed its cloud migration, divested Payroll & Professional Services to simplify its business model, and evolved its leadership structure. The company’s Q4 performance was in line with expectations, featuring growth in recurring revenue, strong ARR bookings, and robust cash flow. For 2025, ALIT expects recurring revenue to be on stronger footing, profit margin to expand independent of top-line performance, and free cash flow to accelerate.

Alight, Inc. (NYSE:ALIT) demonstrated improved retention rates, up 8 points from the prior year, returning to near-historical levels. The sales pipeline shows strong momentum, being up 54% from the prior year, with ARR bookings growing 18% in 2024. Looking ahead to 2025, management projects revenue of $2.32 billion to $2.39 billion, representing negative 1.5% to positive 1.5% growth, with revenue growth rates expected to ramp through the year. The company expects an adjusted EBITDA of $620 million to $645 million with margin expansion between 150 and 180 basis points, driven by $55 million in cloud migration savings and productivity initiatives.

Page 10 of 11