11 Oversold Tech Stocks to Buy According to Hedge Funds

5. Tyler Technologies, Inc. (NYSE:TYL)

RSI: 35.92

Number of Hedge Fund Holders: 44

​Tyler Technologies, Inc. (NYSE:TYL) provides integrated software and technology services for the public sector. Its product portfolio includes solutions for courts and justice, public safety, property appraisal and tax, financial management, permitting and licensing, records management, and K-12 education. The company offers both on-premises and cloud-based deployments, with a strategic collaboration with Amazon Web Services for cloud hosting services. ​

Tyler Technologies, Inc. (NYSE:TYL) reported strong Q1 2025 results, exceeding expectations across key revenue and profitability metrics with double-digit total revenue growth driven by robust subscription revenues. SaaS revenues grew 21%, marking their 17th consecutive quarter of SaaS growth of 20% or more, while transaction-based revenues increased 18.5% due to higher transaction volumes and increased adoption of new services. The company’s non-GAAP operating margin expanded to 26.8%, benefiting from cloud operations efficiencies, a shift to higher-margin SaaS revenues, and favorable operating expense trends.

Despite unpredictable macro conditions, Tyler Technologies, Inc. (NYSE:TYL) maintains a positive outlook, emphasizing the stability of its business model and the resilience of the public sector market. At least 44 hedge funds showed conviction and owned TYL stock at the end of Q4 2024, making it one of the best oversold stocks to buy according to hedge funds.

The public sector market remains active with stable RFP and sales demonstration activity at elevated levels, though some procurement processes have slowed due to consultant-driven processes and additional macro environment scrutiny. The company’s leadership expressed confidence in its position, noting that local government revenues are primarily funded by reliable property taxes and utility revenues, while state-level transaction revenues are largely self-funded through user fees that are generally not impacted by economic conditions.