7 Undervalued Technology Penny Stocks to Buy Now

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1. Clarivate Plc (NYSE:CLVT)

Number of Hedge Fund Holders: 25

Forward P/E: 4.84

Stock Price: $2.92

Clarivate Plc (NYSE:CLVT) is one of the undervalued technology penny stocks to buy now. On January 8, Goldman Sachs downgraded Clarivate Plc (NYSE:CLVT) from Buy to Neutral and cut its 12‑month price target to $3.60 from $4.20. The firm pointed to concerns about Clarivate’s Value Creation Plan, which includes shifting from transactional sales to subscription-based sales, upgrading sales talent, and streamlining its portfolio. Goldman noted that while these initiatives are strategic, they will take time to deliver results, leaving organic revenue growth flat in 2025 amid business changes and market pressures.

The bank also flagged rising competition from AI‑native players and limited pricing power as headwinds for Clarivate’s near‑term performance. Although Clarivate maintains strong EBITDA margins in the low‑40s, well above peers, Goldman sees limited upside for the stock over the next year, citing execution risks and the slow pace of organic growth recovery. Expansion in margins is expected to resume in 2026, but patience will be required.

Separately, Clarivate released its Drugs to Watch 2026 report on January 6, spotlighting eleven therapies with significant clinical and commercial potential across oncology, immunology, metabolic disease, rare conditions, and neurology. The report underscores how innovation, AI insights, and global market trends—particularly in China—are shaping the next wave of blockbuster treatments.

Earlier, on December 18, Clarivate Plc revealed that Nissan Motor selected IPfolio to better manage and safeguard its IP assets. IPfolio is Clarivate’s cloud-based intellectual property (IP) management software. According to Clarivate, IPfolio will allow Nissan to create a flexible system for the long term. This includes tailored workflows for daily tasks, improved data access, and connections to other systems via APIs. The goal is to modernize and integrate Nissan’s IP handling.

Clarivate Plc (NYSE:CLVT) provides data, analytics, and workflow solutions for scientific research, intellectual property, and life sciences. Its platforms include Web of Science for academic research, Derwent for patent intelligence, and Cortellis for drug development insights.

While we acknowledge the potential of Clarivate Plc (NYSE:CLVT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLVT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 9 Best Performing Micro Cap Stocks in 2025 and 10 Must-Buy AI Stocks to Invest In.

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