5 Cheap Software Stocks to Buy According to Analysts

In this article, we discuss 5 cheap software stocks to buy according to analysts. If you want to see more stocks in this selection, check out 12 Cheap Software Stocks to Buy According to Analysts. 

5. Ebix, Inc. (NASDAQ:EBIX)

Number of Hedge Fund Holders: 11

Average Upside Potential Based on Analyst Ratings: 129.34%

Average Price Target: $30.25

Ebix, Inc. (NASDAQ:EBIX) offers on-demand infrastructure software exchanges and e-commerce services to various industries, including insurance, finance, travel, cash remittance, and healthcare. The company and its subsidiaries operate both in the United States and internationally. On March 15, Ebix, Inc. (NASDAQ:EBIX) reported a Q4 non-GAAP EPS of $0.36 and a revenue of $255.2 million, outperforming Wall Street consensus by $29.2 million. The operating cash in Q4 2022 came in at $32.5 million. It is one of the best cheap software stocks to consider. 

On March 16, Craig-Hallum analyst Jeff Van Rhee reiterated a Buy recommendation on Ebix, Inc. (NASDAQ:EBIX) but trimmed the price target on the shares from $40 to $35, due to peer multiples and higher interest rates. The analyst noted that Ebix, Inc. (NASDAQ:EBIX) had a strong performance in Q4, with a year-over-year constant currency revenue growth of 18%, surpassing their top-line estimate by a significant margin. The company is increasing its market share in both North American insurance operations and the India-centric EbixCash business, and is experiencing positive momentum overall, according to Craig-Hallum. 

According to Insider Monkey’s fourth quarter database, 11 hedge funds were bullish on Ebix, Inc. (NASDAQ:EBIX), compared to 17 funds in the prior quarter. D E Shaw is a significant stakeholder of the company, with 637,828 shares worth $12.7 million. 

Here is what Wasatch Small Cap Value Fund has to say about Ebix, Inc. (NASDAQ:EBIX) in its Q1 2021 investor letter:

“The Fund’s leading detractors were largely information-technology companies, which wasn’t particularly surprising given the broader rotation out of tech and into other segments of the value space. Shares of Ebix, Inc. (EBIX) declined after the company’s auditor resigned due to control issues surrounding a new line of gift cards. We don’t think the misstep was intentional, but rather a case of management erring by not focusing more closely on the audit process. We’ve known Ebix for more than 10 years, and we believe the investigation will lead to improved oversight in the future. Still, we are monitoring the situation closely.”