We recently compiled a list of the 10 Worst Performing IT Services Stocks to Buy According to Analysts. In this article, we are going to take a look at where NCR Voyix Corporation (NYSE:VYX) stands against the other IT services stocks.
The IT services industry constitutes a diverse range of technology-driven solutions, including consulting, software development, and system integration. Companies across various sectors depend on these services to enhance operational efficiency, strengthen cybersecurity, develop software solutions, manage IT infrastructure, and receive technical support and strategic guidance. The global IT services market is experiencing significant growth, driven by the rapid adoption of digital technologies, increasing IT investments, and the surging demand for cloud-based solutions.
According to Mordor Intelligence, the market is projected to expand from $1.3 trillion in 2025 to $1.94 trillion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 8.38% over this period. Their report highlights how businesses are embracing digital transformation to improve efficiency, enhance customer experiences, and drive innovation. Additionally, emerging technologies such as 5G, artificial intelligence (AI), blockchain, and augmented reality (AR) are reshaping the IT services landscape, with 5G expected to become the dominant mobile access technology by 2028. The rising adoption of the Internet of Things (IoT) and the shift toward remote work have further amplified the need for robust IT infrastructure. Meanwhile, the increasing complexity of IT environments is prompting organizations to outsource IT services, further fuelling market expansion.
A report by Grand View Research underscores the growing role of IT services in supporting Small and Medium Enterprises (SMEs) as they undergo digital transformation to stay competitive in the global market. The availability of cloud-based solutions has made it easier for smaller businesses to adopt advanced technologies without requiring significant upfront investments. Additionally, the IT and telecom sector is witnessing steady growth as telecom operators increasingly adopt cloud computing and other digital technologies to modernize their infrastructure and provide value-added services.
The U.S. IT services industry has delivered a strong performance so far in 2025. The S&P 500 IT Services Industry Index has gained approximately 5.0% this year, outperforming the broader S&P 500 benchmark, which has posted a negative total return of 1.6% as of March 4. The global IT services market is expected to maintain its momentum, supported by the widespread adoption of digital innovations, rising IT expenditures, and growing demand for scalable and secure IT solutions.
Our Methodology
To determine the 10 worst performing IT services stocks to buy according to analysts, we began by screening all U.S.-listed IT Services companies with a market capitalization above $300 million or stock price above $10, to eliminate smaller and more volatile stocks. Next, we sorted the companies based on their year-to-date (YTD) returns. Further, we selected companies which have a potential upside of 10% or more. Finally, we ranked the bottom 10 stocks based on YTD underperformance, placing the worst-performing ones at the top. Additionally, we also included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on March 4.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An executive in a suit presenting a digital commerce platform to a group of financial advisors.
NCR Voyix Corporation (NYSE:VYX)
YTD Returns: -22%
Potential Upside: 48%
Number of Hedge Fund Holders: 32
NCR Voyix Corporation (NYSE:VYX) provides digital commerce solutions for retail stores and restaurants. Its offerings include platform-based software and services for retailers and restaurants, as well as payment acceptance solutions, multi-vendor connected device services, self-checkout kiosks and related technologies.
NCR Voyix Corporation (NYSE:VYX) announced a strategic transformation plan in August 2024 aimed at boosting revenue and earnings growth over the coming years. As part of this initiative, the company divested its Digital Banking business and implemented cost-cutting measures across various operations. However, despite these efforts, the stock has faced downward pressure, and meaningful progress has yet to materialize.
On February 27, the company reported its fourth-quarter 2024 earnings, posting a 14% year-over-year decline in revenue, while full-year revenue fell by 13%. The company posted an adjusted net loss per share of $0.13 for the year. Following the results, NCR Voyix Corporation (NYSE:VYX) shares dropped by 6%, bringing year-to-date losses to 22%.
In an effort to drive future growth, the company has entered into a five-year, non-exclusive partnership with Worldpay, a payment solutions provider, to enhance its payment capabilities for enterprise clients in the United States. According to NCR Voyix Corporation (NYSE:VYX), its U.S. customers processed over $500 billion in point-of-sale transactions in 2024, with the majority attributed to enterprise clients. Once integration is completed later this year, the company plans to extend these payment services to both new and existing customers.
Despite the recent challenges, analysts remain optimistic about the stock. Stifel Nicolaus analyst J. Parker Lane reaffirmed his Buy rating with a price target of $15, while D.A. Davidson analyst Matt Summerville also maintained a Buy rating, setting a price target of $17.
Overall VYX ranks 4th on our list of the worst performing IT services stocks to buy according to analysts. While we acknowledge the potential of VYX 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 time frame. If you are looking for an AI stock that is more promising than VYX 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. This article is originally published at Insider Monkey.
