15 Hot Tech Stocks to Buy Right Now

12. Clearwater Analytics Holdings Inc. (NYSE:CWAN)

Upside Potential: 23%

Number of Hedge Funds: 18

Clearwater Analytics Holdings Inc. (NYSE:CWAN) provides cloud-based investment accounting and reporting solutions. The company specializes in delivering comprehensive accounting, data, advanced analytics, and highly-configurable reporting for institutional clients, including asset managers, insurance companies, and corporations. Clearwater’s platform automates the aggregation, reconciliation, validation, and reporting of investment data, enabling clients to gain real-time, on-demand insights into their portfolios. As of Q3 2024, the platform aggregates and normalizes data on over $7.3 trillion of global invested assets for over 1,300 clients.

Clearwater Analytics Holdings Inc. (NYSE:CWAN)’s innovative technology and strong customer base lay a solid foundation for growth. The increasing regulatory requirements for transparency in investment reporting further enhance the company’s value proposition. Currently, the company generates 80% of its revenue from the U.S. market, and expansion into new markets is expected to drive significant revenue growth.

On January 13, 2025, the company announced the acquisition of Enfusion Inc. (NYSE:ENFN) for $1.5 billion. With its strong position in the hedge fund and asset management markets, Enfusion is expected to accelerate Clearwater’s aim of building a front-to-back platform for the entire investment lifecycle. The deal not only expands Clearwater Analytics Holdings Inc. (NYSE:CWAN)’s addressable market (around a $2 billion+ opportunity in hedge funds) but will also increase its geographical reach in Europe and Asia. Post the news, a Morgan Stanley analyst upgraded the company to Overweight from Equal Weight, raising his price target to $34 from $30, calling the acquisition a “transformational step that makes the front-to-back opportunity a reality.”