We came across a bullish thesis on Globant S.A. on Value & Momentum by Denis D.’s Substack. In this article, we will summarize the bulls’ thesis on GLOB. Globant S.A.’s share was trading at $55.47 as of February 11th. GLOB’s trailing and forward P/E were 25.33 and 8.93 respectively according to Yahoo Finance.
Globant S.A., together with its subsidiaries, provides technology services worldwide. GLOB has experienced a sharp 73% decline year-to-date, yet the market’s pessimism appears overdone given the company’s positioning for a strong rebound. Core demand for IT services, which underpins GLOB’s business, is expected to recover in 2026, driven by accelerating IT spending and AI adoption. The company is strategically shifting toward higher-growth segments, including Data Center Systems, AI pods, and subscription-based models, supported by a robust backlog across promising industries.
These initiatives are expected to drive sustainable growth and margin expansion, particularly as AI-related services gain momentum. Despite short-term headwinds and muted analyst sentiment, GLOB trades at a 15–25% discount relative to peers, reflecting a market mispricing of its long-term potential. The current valuation presents a compelling entry point for investors seeking deep value exposure in the IT services and AI space, especially given the company’s strong pipeline and transformative growth initiatives. Risks remain, including slower-than-expected backlog conversion and intensified competition, but these are largely priced into the current stock level.
On a discounted cash flow basis, GLOB offers over 200% potential upside, underscoring a highly favorable risk/reward profile. Investors could benefit from a multi-year inflection as the company’s strategic investments in AI and high-growth digital services begin to materialize, creating opportunities for both equity appreciation and operational leverage. Overall, GLOB represents a unique investment case in the technology sector, combining an undervalued market price with significant catalysts for long-term growth, making the stock an attractive proposition for disciplined investors.
Previously, we covered a bullish thesis on Accenture plc by Sanjiv in December 2024, which highlighted the company’s scale in consulting and managed services, steady revenue growth, strong cloud and GenAI adoption, and consistent free cash flow generation. ACN’s stock price has depreciated by 35.30% since our coverage. Denis D. shares a similar perspective but emphasizes Globant’s (GLOB) deep value opportunity amid near-term headwinds, focusing on its pivot to higher-growth IT and AI segments and the potential for a significant multi-year rebound.
Globant S.A. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held GLOB at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of GLOB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GLOB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
