10 Worst Performing IT Services Stocks to Buy According to Analysts

2. Globant S.A. (NYSE:GLOB)

YTD Returns: -32%

Potential Upside: 57%

Number of Hedge Fund Holders: 25

Globant S.A. (NYSE:GLOB) provides services that help businesses transition to digital operations by integrating innovation, design, and technology at scale. The company serves major clients such as Google, Electronic Arts, and Santander, offering a range of services that include artificial intelligence, automation, digital marketing, cybersecurity, gaming, life sciences, and business strategy to enhance efficiency and drive growth.

On February 21, shares of Globant S.A. (NYSE:GLOB) plummeted by 28% following the release of its mixed fourth-quarter 2024 earnings. Revenue for the quarter grew 10.6% year-over-year to $642.5 million, while adjusted earnings per share (EPS) stood at $1.75, aligning closely with expectations. However, guidance for fiscal year 2025 fell short of market projections, with anticipated revenue growth weaker than expected. The company projected adjusted EPS for 2025 to be in the range of $6.80 to $7.20, which, at the mid-point, was approximately 5% below analyst consensus estimates.

In response to the earnings report, Guggenheim analyst Jonathan Lee noted that the 2025 guidance was underwhelming and subsequently lowered his price target for the stock from $240 to $220. Despite this adjustment, he maintained a Buy rating on the shares. Overall, the market consensus remains optimistic, with the current 12-month median price target at $230, implying a potential upside of 57%.