In this piece, we discuss the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.
The topic is relevant in today’s macro backdrop, where investors are grappling with several challenges in 2026, including persistent inflation, volatile monetary policy, and the impact of ongoing advances in artificial intelligence (AI).
JPMorgan’s 2026 outlook report (December 9, 2025) had highlighted that investors are facing multiple risks. The firm projected a 35% probability of a U.S. and global recession, alongside soft labor demand. At the same time, the report highlighted shrinking household spending and weak business sentiment, hinting at potential volatility and a slowdown.
In its January 30, 2026, report, U.S. News described the ongoing macro setup similarly to JPMorgan. The report cited ongoing headwinds related to trade tensions, sticky core inflation at 2.8% (November 2025), and weak consumer sentiment.
At the same time, the Federal Reserve sustains historically low unemployment at 4.4% and projects 2.3% GDP growth in 2026.
However, market observers believe inflation stemming from government policies, alongside a possible AI bubble, are key factors keeping market volatility just around the corner.
While the broader market was relieved to see the U.S. economy avoid a downturn in 2025, these factors still underpin the ongoing uncertainty investors face in 2026.
Yet JPMorgan expressed optimism in its report, projecting double-digit gains for global equities in 2026. The AI-driven capital expenditures and earnings growth of 13%-15% in the U.S. drove the firm’s stance, even though the gap between AI and non-AI sectors widens. According to the bank, a recession is often preceded by market declines. However, recoveries begin before improvements in economic conditions are evident.
On this note, we will now move to our list of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.
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Our Methodology
To curate our list of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts, we used online screeners to identify a list of stocks that operate in the technology-driven industries, including software infrastructure and data-enabled platforms, have lost 15% or more over the past 12 months, and are trading near their 52-week low.
Next, we ensured to select stocks with strong analyst sentiment and coverage. Furthermore, we assessed hedge fund sentiment toward these stocks using Insider Monkey’s database, which tracks over 1,000 hedge funds. Finally, we ranked these stocks in ascending order based on each stock’s upside potential.
Note: All data were extracted as of market close on February 20.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Vertex, Inc. (NASDAQ:VERX)
Upside Potential: 56.10%
Number of Hedge Fund Holders: 27
As of February 18, 2026, more than half of covering analysts remain bullish on Vertex, Inc. (NASDAQ:VERX), indicating 53.97% upside potential with a consensus price target of $19.00.
On February 12, 2026, Adam Hotchkiss, an analyst at Goldman Sachs, reduced Vertex, Inc. (NASDAQ:VERX)’s price target from $25 to $23 while keeping his Buy rating. The downgrade came after Q4 2025 results, which were followed by a 13% drop in share price.
The firm remains confident in the company’s outlook despite concerns regarding short-term free cash flow volatility. Its optimism stems from management’s FY26 guidance, which indicates a strong surge in overall future performance. The firm’s view was inclined toward slowing growth of subscription revenue and ARR due to softness in upsell activity, higher churn, and lower entitlement growth.
Vertex, Inc. (NASDAQ:VERX) reported Q4 2025 results on the previous day. The release featured 9.1% year-over-year growth in revenue ($194.7 million), thanks to a 23% YoY growth in cloud revenue. The company posted a net revenue retention rate of 105% and ARR YoY growth of 11.3% to $671.0 million.
The adjusted EBITDA margin increased to 21.8%, while the non-GAAP net income was $27.8 million with an EPS of $0.17. While the company’s full-year 2025 revenue was $748.4 million (+12.2% YoY), it guided for 2026 revenue of $823.5–$831.5 million and cloud growth of 25%. As part of its $150 million buyback program, the company bought back $10 million worth of shares.
Vertex, Inc. (NASDAQ:VERX), a leading provider of indirect tax and e-invoicing solutions, uses AI-powered offerings to accelerate enterprise revenue growth, profitability, and operational efficiency in global markets.
11. monday.com Ltd. (NASDAQ:MNDY)
Upside Potential: 61.20%
Number of Hedge Fund Holders: 64
As of February 18, 2026, about 90% of analysts remain bullish on monday.com Ltd. (NASDAQ:MNDY), with a consensus price target of $120, suggesting a 55.54% upside.
Monday.com Ltd. (NASDAQ:MNDY) announced its fiscal Q4 2025 and full-year results on February 9, 2026.
With 45% YoY growth in customers with $100K+ ARR, monday.com Ltd. (NASDAQ:MNDY) is still growing upmarket. Management anticipates $1,452–$1,462 million in revenue and $165–175 million in non-GAAP operating income in FY2026.
During the quarter, monday.com Ltd. (NASDAQ:MNDY) reported revenue of $333.9 million, up 25% year-over-year. Meanwhile, full-year revenue came in at $1,232 million, up 27% year over year. In Q4 and FY2025, non-GAAP operating margins were 13% and 14%, respectively, with adjusted free cash flow of $322.7 million.
On February 10, 2026, analysts lowered their MNDY price targets, citing short-term demand disruptions and a more cautious outlook for revenue. TD Cowen, DA Davidson, and Cantor Fitzgerald lowered their price targets on monday.com Ltd. (NASDAQ:MNDY) to $125, $100, and $95, respectively.
monday.com Ltd. (NASDAQ:MNDY) offers Work OS, a cloud-based visual work platform with modular components that enable teams worldwide to efficiently manage workflows and develop applications across a variety of industries.
10. Atlassian Corporation (NASDAQ:TEAM)
Upside Potential: 86.90%
Number of Hedge Fund Holders: 82
As of February 18, 2026, about 80% of analysts remain bullish on Atlassian Corporation (NASDAQ:TEAM), with a consensus target of $150, implying an 80.33% upside.
On February 6, 2026, Bernstein noted a robust Q2 performance and durability amid generative AI narratives. While doing so, the firm reiterated an Outperform rating on Atlassian Corporation (NASDAQ:TEAM) while reducing its target to $290 from $304.
Citing industry unrest and stressing that Atlassian Corporation (NASDAQ:TEAM)’s fundamentals are still strong, Citi also reiterated its Buy rating on February 9, 2026, and lowered its target from $210 to $160.
Moreover, on February 5, 2026, Atlassian Corporation (NASDAQ:TEAM) released its Q2 FY26 results, which reaffirmed analyst optimism. Marking $1.1 billion in cloud revenue and its first quarter with $1 billion or more, total revenue increased 23% year-over-year to $1.6 billion. For the third consecutive quarter, cloud net revenue retention surpassed 120%, and RPO increased 44% year-over-year to $3.8 billion.
With 600+ $1 million+ ARR customers (+40% YoY) and Teamwork Collection surpassing 1 million seats, enterprise momentum remained strong. Atlassian’s management placed a strong emphasis on opportunistic share buybacks supported by healthy free cash flow, AI-driven adoption, and disciplined growth.
Atlassian Corporation (NASDAQ:TEAM) develops productivity and team collaboration software, including Jira, Confluence, and Jira Service Management, that support cloud adoption, enterprise workflows, and AI-powered solutions for more than 350,000 clients worldwide.
