11 Oversold Tech Stocks to Buy According to Hedge Funds

3. Clearwater Analytics Holdings, Inc. (NYSE:CWAN)

RSI: 39.66

Number of Hedge Fund Holders: 48

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) provides a cloud-based platform for automated investment accounting, performance measurement, compliance monitoring, and risk analytics. The company serves large financial and government institutions, managing more than $8 trillion in assets through its platform. The company also incorporated AI capabilities to improve client interactivity and data analysis. CWAN ranked seventh on our recent list of 10 Best Debt Free Mid Cap Stocks to Buy Now.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered solid results in the most recently reported Q4 2024, with revenue growing 27.7% YoY, and record-high annual recurring revenue generated, showing a 25.3% increase on a YoY basis. The company also significantly improved its net revenue retention rate to 116%, and achieved a record-high gross margin, leading to a 33% EBITDA margin in the quarter. These impressive results were driven by successful cross-selling initiatives, strong client retention rates (at 98%), effective pricing strategies, as well as ongoing international expansion.

Looking ahead to 2025, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) expects revenue to grow between 19% to 20% YoY, with EBITDA projected to further expand at 34% for the fiscal 2025. The company continues to focus on multiple growth drivers, including new logo acquisition in North America, international expansion, back-to-base investments, and strategic partnerships, while maintaining its commitment to operational excellence and innovation. Despite negative year-to-date stock price performance, hedge funds have strong conviction in CWAN, making it one of the best oversold stocks on our list.