Is Pegasystems (PEGA) the Best Overlooked AI Stock to Buy Now?

Pegasystems Inc. (NASDAQ:PEGA) is among the overlooked AI stocks to buy now. On October 15, 2025, Rosenblatt reiterated its ‘Buy’ rating on Pegasystems Inc. (NASDAQ:PEGA) and raised the price target to $65 from $61, suggesting a potential upside of about 16%.

This revision in outlook comes as the company plans to report its third-quarter earnings on October 21, after the market closes, with an earnings call the next morning. The analyst expects strong adoption of the Blueprint offering, which is expected to drive faster sales cycles and about 18% cloud revenue growth for the year, contributing up to 45% of total revenue.

The firm further highlights that the enterprise transformation company’s cloud annual contract value (ACV) mounted 28% YoY on a constant currency basis in the second quarter. This is supported by a surge in total ACV to $1,514 million, implying 16% YoY growth.

Pegasystems Inc. (NASDAQ:PEGA) is a Massachusetts-based company that specializes in enterprise software. Incorporated in 1983, the company provides Pega Infinity, Pega Customer Service, Pega Platform, Pega GenAI Blueprint, and Pega Cloud, among others.

While we acknowledge the potential of PEGA to grow, 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 PEGA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.