5 Oversold Small-Cap Software Stocks Offering Massive Upside

2. Agilysys Inc. (NASDAQ:AGYS)

Agilysys Inc. (NASDAQ:AGYS) is one of the 10 oversold small-cap software stocks offering massive upside.

On April 14, Agilysys Inc. (NASDAQ:AGYS) revealed that the company has extended its strategic collaboration with FreedomPay. The expanded partnership will provide support for an open and comprehensive commerce model in the hospitality sector through lodging, food and beverages, gaming, and resort venues.

According to the President of FreedomPay, Chris Kronenthal, this involves making sure that merchants come first and can have flexible approaches when it comes to implementing the best technology available. The collaboration continues because of a shared interest in assisting hospitality companies in integrating security and scalability into their payment processing systems, in general technology strategy.

Earlier on April 9, Oppenheimer reduced the price target on Agilysys Inc. (NASDAQ:AGYS) from $140 to $90 while reaffirming its Outperform rating on the stock. This revision is primarily driven by a mix of lower software group multiples and a more cautious Marriott projection. Additionally, the firm believes long-term investors still find the stock quite appealing.

According to Oppenheimer, the market as a whole is intentionally undervaluing the long-term growth potential of the company in the hospitality market. Furthermore, the firm sees significant upside for the fourth quarter of 2026 results and fiscal year 2027 revenue guidance as compared to consensus estimates, even amidst poor travel trends. Ultimately, the stock might be successfully supported by a much more positive post-earnings estimated revision trend, particularly in light of the extremely low expectations that followed a steep year-to-date selloff.

Agilysys Inc. (NASDAQ:AGYS) caters to the hospitality industry by delivering software-based services and solutions. Its offerings include digital kitchen management services, online check-in and check-out services, solutions for property management, and more. Additionally, it also offers procurement and inventory management solutions.