10 Best SaaS Stocks Trading at a Discount

Page 9 of 9

1. Block, Inc. (NYSE:XYZ)

Number of Hedge Fund Holdings: 64

Block, Inc. (NYSE:XYZ) is a well-known payments processing and financial technology company. Over the past couple of weeks, the firm has been at the center of attention of several analysts. For instance, on December 8th, TD Cowen kept a Buy rating on the stock and kept a $91 share price target for the firm. It called Block, Inc. (NYSE:XYZ) a “Best Idea for 2026,” due to the belief that the firm can grow its gross profit by mid-teen percentages in the medium term.

TD Cowen’s optimism about Block, Inc. (NYSE:XYZ) came after an equally optimistic note by RBC Capital on November 20th. In it, the financial firm was left impressed by the payments company’s Investor Day. RBC Capital praised Block, Inc. (NYSE:XYZ)’s Proto mining business, which it believes provides good insight into the firm’s diversification efforts. Subsequently, it maintained a $90 share price target and an Outperform rating.

After RBC Capital, UBS kept its Buy rating and $90 share price target for Block, Inc. (NYSE:XYZ) in early December. UBS’ action also followed the firm’s investor day, which left it confident about growth in the Square and CashApp businesses. UBS pointed out that Block, Inc. (NYSE:XYZ) had 26 revenue streams, which were generating $100 million in gross profit that for a significant growth over the five revenue streams the firm had in 2020.

While we acknowledge the potential of XYZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XYZ and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9