15 Best New Tech Stocks To Invest In

5. NCR Atleos Corp. (NYSE:NATL)

Market Capitalization as of January 21: $2.39 billion

Number of Hedge Fund Holders: 27

NCR Atleos Corp. (NYSE:NATL) provides financial technology solutions and specializes in self-service banking, ATM networks, and managed network services. It offers several products and services, including ATMs, ITMs, network solutions, and professional services. Its customers include financial institutions, retailers, and other enterprises globally.

The company received a Buy rating from Compass Point on 23 December 2024, with a price target of $57. This bullish outlook is based on a forecast of its free cash flow reaching $418 million by the end of FY26 and a market capitalization/free cash flow multiple of 10x. The company is considered to be in a strong market position with a 36% market share in the ATM sector and is well-equipped to benefit from the demand for managed services and ATM as a Service (ATMaaS) products. The firm anticipates that its ARPU will rise from 5.1 in 2024 to 5.9 by 2026 in the self-service banking segment.

In the third quarter of 2024, NCR Atleos Corp. (NYSE:NATL) made $1.08 billion in revenue driven by the ATMaaS business. ATMaaS revenue surged 23% year-over-year to $49 million in the quarter, driven by a 46% increase in live customers and expansion into 10 new markets. This growth translated to a 19% increase in gross profit to $16.1 million. While the current focus is on maximizing revenue per unit, the long-term goal is to expand the services provided to customers, leading to growth potential.