11 Underperforming Tech Stocks to Buy According to Analysts

In this article, we will discuss the 11 Underperforming Tech Stocks to Buy According to Analysts.

On June 23, Andrew Slimmon, Morgan Stanley Investment Management Senior Portfolio Manager, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and ongoing tech selloff, specifically addressing the recent sell-off in AI-related stocks. He characterized this market movement as healthy, explaining that while these stocks are not necessarily expensive, they have become crowded due to momentum traders, and a correction helps prevent the type of unsustainable euphoria that typically leads to poor outcomes. He noted that the shift in Fed expectations (moving from certainty regarding interest rate cuts to the possibility of hikes) has also contributed to deflating this bubble.

Despite the current volatility, Slimmon maintained that pullbacks in these AI stocks represent buying opportunities. He argued that the stocks are backed by valid earnings revision stories, as both share prices and earnings have increased significantly. He pointed out that sectors like memory and chip stocks are not currently trading at high multiples, suggesting the market is acting rationally and correctly pricing these cyclical earnings rather than succumbing to irrational euphoria. He reiterated that while there are investors driven solely by the momentum of rising prices, the fundamental earnings growth justifies holding these positions.

Our Methodology

We used screeners to identify tech and tech-enabled stocks that have declined by at least 30% over the past 3 months but for which analysts see potential to recover (with an average upside potential of at least 30%). We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

Note: All data was sourced on June 25. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

11 Underperforming Tech Stocks to Buy According to Analysts

11. Verra Mobility Corporation (NASDAQ:VRRM)

Number of Hedge Fund Holders: 31

Verra Mobility Corporation (NASDAQ:VRRM) is one of the underperforming tech stocks to buy according to analysts. On June 15, Verra Mobility was selected by the Los Angeles City Council to design, operate, and maintain the state’s largest speed safety program. The initiative will deploy automated enforcement systems across 125 sites identified as high-injury and crash-prone corridors, with operations expected to be fully functional by the end of 2026.

This program is part of a six-city pilot authorized by Assembly Bill 645, aiming to reduce traffic fatalities and modify driver behavior. By utilizing data-driven site selection, the city intends to address the persistent issue of speeding, which accounted for a significant portion of fatal and severe crashes in Los Angeles over recent years.

Verra Mobility Corporation (NASDAQ:VRRM) brings proven experience from successful programs in cities like San Francisco and Oakland. The company will implement privacy-focused technology and partner with local minority-owned firm Morgner Construction Management for installation. The deployment reflects a broader commitment to street safety, with data from other regions suggesting significant declines in both speeding and traffic fatalities.

Verra Mobility Corporation (NASDAQ:VRRM) provides smart mobility technology solutions. The company’s operations are divided into the following segments: Government Solutions, Commercial Services, and Parking Solutions.

10. Accenture (NYSE:ACN)

Number of Hedge Fund Holders: 64

Accenture (NYSE:ACN) is one of the underperforming tech stocks to buy according to analysts. On June 23, Accenture entered a multi-year partnership with the Seattle Seahawks, becoming the team’s first-ever global partner. This collaboration focuses on business transformation rather than traditional branding, leveraging Accenture’s expertise in technology, data, and AI to modernize the Seahawks’ data infrastructure, business operations, and fan engagement strategies.

A primary goal of the alliance is to support the Seahawks’ international expansion efforts. The partnership kicks off with the Accenture-presented “Trophy Tour,” which will bring the team’s Super Bowl championship hardware to fans in Germany, Australia, and Canada to capitalize on growing global interest in the NFL.

Beyond business and global growth, the partnership includes a commitment to community impact in Seattle. This deal adds to Accenture’s (NYSE:ACN) growing portfolio of sports collaborations aimed at reinventing the future of athletics through digital innovation.

Accenture (NYSE:ACN) is a global professional services company specializing in strategy, consulting, technology, and digital transformation. The company provides services in cloud computing, AI, security, and operations, helping organizations modernize systems and drive innovation across industries.

9. Fastly Inc. (NASDAQ:FSLY)

Number of Hedge Fund Holders: 41

Fastly Inc. (NASDAQ:FSLY) is one of the underperforming tech stocks to buy according to analysts. On June 10, Fastly and Skyfire partnered to enable secure, trusted “agentic commerce” by integrating Skyfire’s identity and payment infrastructure directly into Fastly’s edge cloud platform. This solution allows enterprises to distinguish legitimate, revenue-generating AI agents from malicious traffic in real time, transforming autonomous AI activity into an accountable and monetizable channel.

By embedding identity verification and payment validation at the network edge, the partnership enables businesses to identify the entity behind every AI request, apply dynamic pricing and usage policies, and handle high-concurrency traffic without backend re-architecting. The solution complements Fastly’s existing security tools, providing a scalable way to manage the rising volume of autonomous agents interacting with APIs and e-commerce platforms.

This integration allows companies to move beyond treating AI agent traffic solely as a security threat and instead adopt it as a new economic driver. By making trust and payment decisions in milliseconds at the edge, enterprises can securely automate complex transactions with AI agents, ensuring compatibility with their existing infrastructure while capturing value from the next wave of autonomous digital commerce.

Fastly Inc. (NASDAQ:FSLY) operates a programmable, high-performance edge cloud platform that delivers faster, safer, and more scalable sites and apps to customers.

8. Endava (NYSE:DAVA)

Average Upside Potential: 72.34%

Endava (NYSE:DAVA) is one of the underperforming tech stocks to buy according to analysts. On May 21, Endava reported a challenging FQ3 2026, with revenue declining 8.4% year-over-year to £178.5 million. The company faced uneven demand and extended deal cycles, leading to significant financial impacts, including a £364.6 million goodwill impairment and a deferred tax asset charge. Consequently, the company recorded a diluted loss per share of £7.55, a sharp downturn from the profit reported in the same period last year.

Despite these near-term obstacles, leadership emphasized a successful strategic pivot toward AI-native delivery. AI-driven business grew from 5% of total revenue a year ago to 15% this quarter, bolstered by new partnerships with Mastercard and Tyl by NatWest. Management maintains that focusing on these high-growth AI initiatives and deepening client relationships will help convert current headwinds into future momentum.

Endava (NYSE:DAVA) now anticipates FQ4 revenue to range between £181.0 million and £185.0 million, reflecting a continued year-over-year decline in constant currency. The company expects adjusted diluted EPS for the next quarter to fall between £0.09 and £0.13.

Endava (NYSE:DAVA) is a global technology services company specializing in digital transformation, software engineering, and intelligent automation solutions. Founded in 2000 and headquartered in London, the company serves industries such as payments, financial services, and telecommunications.

7. EPAM Systems Inc. (NYSE:EPAM)

Number of Hedge Fund Holders: 34

EPAM Systems Inc. (NYSE:EPAM) is one of the underperforming tech stocks to buy according to analysts. On June 8, EPAM Systems and TGS announced a collaboration to accelerate AI adoption in the energy sector, headlined by the successful migration of TGS Imaging AnyWare to AWS. By using cloud-native infrastructure, this platform allows energy companies to process petabyte-scale seismic data faster and more cost-effectively than traditional on-premises systems, removing critical bottlenecks in exploration and production.

The collaboration centers on three core innovations: TGS Data Verse for secure, OSDU-compliant subsurface data access; cloud-native seismic imaging that uses AWS Graviton and Spot instances for enhanced performance; and EPAM’s Energy HPC Orchestrator/EHO for modular, AI-enabled workflows. These tools provide a unified environment that democratizes access to complex data and supports end-to-end subsurface analysis.

This initiative positions TGS to become an AI-native geoscience firm by combining its energy intelligence with AWS’s computational scale and EPAM Systems Inc.’s (NYSE:EPAM) cloud engineering expertise. The partnership provides energy operators with a more agile, high-performance infrastructure, enabling them to move from raw data to discovery more efficiently while reducing the capital intensity of large-scale computational projects.

EPAM Systems Inc. (NYSE:EPAM) is a Pennsylvania-based provider of digital platform engineering and software development services. The company offers engineering, cloud, marketing, and cybersecurity services, among others.

6. Wix.com Ltd. (NASDAQ:WIX)

Number of Hedge Fund Holders: 53

Wix.com Ltd. (NASDAQ:WIX) is one of the underperforming tech stocks to buy according to analysts. On June 15, Wix partnered with Microsoft (MSFT) to integrate its “Wix Harmony” website creation platform directly into Microsoft 365 Copilot. By using the OpenAI Apps SDK, this integration allows users to generate professional, production-ready websites simply by describing their business needs, goals, and brand style via text or voice prompts within the Copilot interface.

This collaboration eliminates the need for context switching by enabling users to build, manage, and analyze their digital presence (including commerce, scheduling, and SEO) without leaving the Microsoft 365 environment. Once a site is generated, users can continue to refine their website, update business logic, and monitor performance through natural language interactions in the same chat window.

The Wix app is now available to Microsoft 365 Copilot users, who can access it by prompting “@Wix” within their chat. By bringing website creation into the flow of work, the partnership aims to simplify the entrepreneurial process, allowing businesses to launch and manage their digital operations entirely through an intuitive, chat-based interface.

Wix.com Ltd. (NASDAQ:WIX) provides a web development platform for creators, delivering services through a SaaS model. Its products include website templates, website builders, website designs, an app market, web hosting, domain names, website accessibility, a mobile app builder, and an AI website builder.

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