In this article, we explore the 10 Best Beaten Down Technology Stocks to Buy According to Analysts.
Technology stocks have been the bright spot in an equity market that continues to edge higher while shrugging off a series of headwinds. From an aggressive trade war to tariffs and uncertainty over monetary policies, the headwinds have continued to mount. Nevertheless, investors have shrugged off the concerns depicted by the tech-heavy NASDAQ 100, which has rallied 17% year to date.
The US Federal Reserve’s decision to cut interest rates and potentially two more cuts before year-end is a new catalyst, likely to push technology stocks even higher. Investors also remain bullish about tech stocks amid optimism about the artificial intelligence boom.
Amid the blockbuster gains, fear is starting to grip, with equities at all-time highs. While exposure to tech high flyers is at an all-time high, some investors have begun to hedge, wary of a potential pullback.
“The market is at highs, volatility is at lows, I think there are a lot of easy arguments to make as to why you should hedge,” said Greg Boutle, head of US equity and derivative strategy at BNP Paribas SA. “September does tend to be a bit seasonally weaker,” he added.
The hedges are designed to protect long equity portfolios in the event of a significant pullback, according to Christopher Jacobson, co-head of derivatives strategy at Susquehanna International Group. While any pullback is likely to affect stocks trading at premium valuations, there is also renewed focus on tech stocks trading at highly discounted levels following dip pullbacks.
“Just because the Mag Seven won past tech cycles like mobile, the internet and e-commerce, that doesn’t mean they’ll win here,” said Chris Smith, portfolio manager at Artisan Partners’ Antero Peak Group. “The next winners will be the ones that address large and unconstrained markets through AI, becoming bigger companies in the future than the Mag Seven are today.”
With that in mind, let’s look at the best beaten-down technology stocks to buy according to analysts.
Our Methodology
To identify the best beaten-down technology stocks to buy according to analysts, we used Finviz screener to scan for technology stocks. We focused on tech stocks that are down by more than 30% year to date. We also trimmed our list to focus on stocks with an upside potential of more than 30% as of September 30. Finally, we ranked the stocks in ascending order based on their upside potential. We’ve also factored in hedge fund sentiment for each stock based on data from Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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).
Best Beaten Down Technology Stocks to Buy According to Analysts
10. SPS Commerce, Inc. (NASDAQ:SPSC)
Year to Date Performance: -43.03%
Stock Upside Potential: 35.17%
Number of Hedge Fund Holders: 34
SPS Commerce Inc. (NASDAQ:SPSC) is one of the best beaten-down technology stocks to buy, according to analysts. On September 25, analysts at DA Davidson reiterated a ‘Neutral’ rating on the stock and a $125 price target.
The stance follows the 2025 Investor Day event, during which the company provided valuable insights into its product roadmap and generative AI strategy. The research firm also echoed the management team’s push to reiterate a high single-digit organic growth outlook for the year. In addition, SPS Commerce remains focused on long-term growth plans as it moves to capture a larger share of the expanding total addressable market.
SPS Commerce has established a reputation for providing retail supply chain cloud services. It has achieved 98 consecutive quarters of revenue growth while serving over 50,000 recurring revenue customers across the retail grocery distribution, supply, and logistics sector.
SPS Commerce, Inc. (NASDAQ:SPSC) is a technology company that provides supply chain solutions. Its solutions connect retailers and suppliers through a cloud-based platform to automate and simplify the exchange of business documents and product data.
9. Vertex Inc. (NASDAQ:VERX)
Year to Date Performance: -53.40%
Stock Upside Potential: 41.23%
Number of Hedge Fund Holders: 25
Vertex Inc. (NASDAQ:VERX) is one of the best beaten-down technology stocks to buy, according to analysts. On September 11, at the Goldman Sachs Communacopia+ Technology Conference, the company reiterated its investments in e-invoicing and artificial intelligence as key drivers of long-term growth.
The remarks come as the company faces pressure to lower its revenue growth guidance by $12 million, amid slowing customer growth. Amidst the struggles, Vertex is focusing on achieving 100% country coverage for e-invoicing, which is expected to unlock $100 million in revenue.
In addition, the company is increasingly investing in artificial intelligence, which it expects to enhance margins and strengthen its competitive edge. It has already launched SmartCat, an AI-powered product categorization tool that leverages AI to improve internal efficiencies. The company also acquired Kitsugi, an AI startup that focuses on addressing market disruptions in small to medium-sized companies.
Vertex Inc. (NASDAQ:VERX) is a technology company that provides enterprise tax technology solutions for the retail, wholesale, and manufacturing industries. It offers tax determination, compliance, and reporting, including workflow management tools, as well as solutions for tax data management and document management.
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