12 Oversold Software Stocks to Invest In

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11. Descartes Systems Group (NASDAQ:DSGX)

Number of Hedge Fund Holders: 31

Upside Potential: 69.3%

Descartes Systems Group (NASDAQ:DSGX) is one of the 12 oversold software stocks to invest in.

On January 15, Morgan Stanley analyst Chris Quintero upgraded Descartes Systems Group (NASDAQ:DSGX) from an Equal Weight to an Overweight rating. The stock price target was also raised from $88 to $110, implying more than 67% upside.

Quintero expects organic growth acceleration to persist for Descartes Systems Group (NASDAQ:DSGX) during the coming year, as the company has moved past its “trough” shipping volumes. He also anticipates that the professional services refresh cycle will benefit the company, enabling market-share expansion.

On January 9, the price target on Descartes Systems Group (NASDAQ:DSGX) was lowered from $112 to $102 by Wolfe Research analyst Scott Group. The analyst reiterated his Outperform rating on the stock, which offers more than 55% upside.

Group noted the ISM manufacturing index, which remained below 50 for 36 of the previous 38 months, reflecting a prolonged, muted cycle in transportation. He also highlighted that LTL tonnage declined in 22 of the past 23 months. However, truckload spot rates significantly outpaced the typical seasonality in recent weeks.

Descartes Systems Group (NASDAQ:DSGX) is a logistics technology solutions company with a global outreach. It offers SaaS solutions for transportation management, e-commerce, and customs compliance by leveraging cloud-based capabilities. The company delivers a comprehensive suite of solutions such as routing, telematics, shipping, trade intelligence, and B2B connectivity services.

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