1. NICE Ltd. (NASDAQ:NICE)
Average Analyst Price Target Upside: 56.83%
Number of Hedge Fund Holders: 29
NICE Ltd. (NASDAQ:NICE) is a provider of cloud platforms for AI-driven digital business solutions. It offers a wide range of digital business tools for diverse sectors such as customer engagement, financial crime prevention, and public safety. It tops our list of best long term tech stocks to invest in now.
The company’s offerings, particularly NICE CXone and NICE Actimize stand out for their ability to improve customer interactions and streamline operations. By integrating advanced analytics and artificial intelligence into its platforms, the company helps organizations across the globe improve both customer experiences and operational efficiencies.
With over 25,000 clients in more than 150 countries, including a substantial number of Fortune 100 companies, the company is clearly establishing a strong market presence. Additionally, NICE (NASDAQ:NICE) has received Buy ratings from 17 analysts. As of September 26, the average price target of $265.00 represents an upside of 56.83% to the stock’s current price.
The strong demand for its cloud solutions is impressive. During the second quarter, the company experienced a surge in cloud revenue, which indicates successful penetration into new markets and an expanding customer base.
The adoption of NICE’s (NASDAQ:NICE) CXone is gaining momentum, largely because it offers a comprehensive solution that effectively integrates AI capabilities. Many organizations are recognizing the necessity of adopting AI to remain competitive, and NICE’s platforms are proving to be essential tools in this transition.
It is evidenced by an increasing number of large deals, including significant contracts with major global players. During Q2, the company announced a seven-digit contract with one of the largest IT firms replacing existing systems with CXone, which points to the platform’s superior capabilities in functional AI.
During the same quarter, a well-known global hotel chain opted for NICE’s solutions to support its digital transformation, which signifies the tangible benefits of using CXone autopilot to accurately interpret consumer intents.
According to Insider Monkey’s database, 29 hedge funds held stakes in NICE (NASDAQ:NICE) in the second quarter, with positions worth $742.727 million. With 1.051 million shares of the company, valued at $180.76 million, RGM Capital is the largest shareholder of the company, as of June 30.
Parnassus Investments stated the following regarding NICE Ltd. (NASDAQ:NICE) in its Q2 2024 investor letter:
“NICE Ltd. (NASDAQ:NICE) reported first-quarter earnings that exceeded consensus estimates. However, the stock fell on news the company’s CEO plans to leave at the end of the year and on concerns that its contact center software would be replaced by generative AI. We believe the concerns are overblown and anticipate instead that the firm will integrate AI features successfully.”
While we acknowledge the potential of NICE Ltd. (NASDAQ:NICE) as an investment, 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 NICE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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