20 Undervalued Momentum Stocks That Are Taking Off

15. Concentrix Corporation (NASDAQ:CNXC)

3-Month Price Change: 22.0%

Forward PE: 4.6

Number of Hedge Fund Holders: 33

Concentrix Corporation (NASDAQ:CNXC) is one of the 20 undervalued momentum stocks that are taking off. Following its fiscal Q2 earnings, Concentrix continues to receive cautious commentary from Bank of America analyst Ruplu Bhattacharya, who reiterated a Hold rating, citing a mix of near-term pressures and longer-term uncertainties. On June 27, the analyst adjusted his price target on the stock to $61 from $65, reflecting a slightly reduced 2026 EPS estimate of $12.16 (down from $12.32), while keeping the valuation multiple unchanged.

The recent revenue beat in Q2 was a positive surprise; however, the company fell short of its operating margin guidance. The analyst attributed this to costs led by Concentrix’s decision to retain workforce for the paused client programs amid tariff-related uncertainty, as well as upfront investments aimed at supporting a stronger second half. These choices resulted in negative operating leverage during the quarter.

Earlier in his June update, Bhattacharya had also highlighted the muted short-term impact of generative AI on Concentrix’s revenue. While the company is actively investing in AI capabilities, deployment across its client base remains in early stages. As a result, any meaningful revenue uplift from AI is likely a longer-term story.

Bhattacharya had also noted that while verticals like travel and financial services are showing resilience, others, including technology and healthcare, are seeing weaker demand. He acknowledged that Concentrix’s valuation looked inexpensive and flagged potential for a short squeeze given elevated short interest. Still, overall, the macro backdrop and sector-specific headwinds justify a Hold rating.

Concentrix Corporation (NASDAQ:CNXC) specializes in designing, building, and managing end-to-end Customer Experience (CX) and digital operations solutions.