We recently published a list of 10 Mid-Cap IT Stocks Outperforming The Market In 2025. In this article, we are going to take a look at where WNS (Holdings) Limited (NYSE:WNS) stands against other mid-cap IT stocks outperforming the market in 2025.
US Stocks continue their recovery from a post-DeepSeek and post-tariffs period as nerves surrounding Donald Trump’s unpredictable policies calm down. The Nasdaq is surging 1.19% followed by the S&P 500 at 0.64%. The bullishness is expected to continue for the remainder of the day.
To determine which stocks could outperform the market in the coming months, it is essential to look at sectors that are benefitting from ongoing trends. IT stocks are unique in a way that with time, all companies have to spend more to keep their systems updated. Analysts expect companies to add 5% to their IT budgets in 2025. This, together with the increasing demand for AI products, will propel the sector’s returns in 2025.
Some companies have already started the year on a positive note. There are companies that are seeing increasing demand for their innovative products while others continue to serve the infrastructure involved in deploying these innovative solutions. Either way, it is important to look at what’s driving these stocks.
We decided to take a look at the top 10 mid-cap IT stocks that are outperforming the market in 2025. To come up with our list, we only considered stocks with a market cap of at least $10 billion with the highest return since the start of the year.
An IT professional working with a laptop in a modern, urban office.
WNS (Holdings) Limited (NYSE:WNS)
WNS (Holdings) Limited operates as a business process management company that provides analytical, data, business transformation, and voice services. It operates through four segments; BFSI, TSLU, MRHP, and HCLS. Despite high risks, the company is up 27% for the year. Let’s take a look at whether this surge in price is justified, or makes the stock too risky to get involved in.
WNS announced its Q3 result on 23rd January, reporting modest growth in revenue. While the EPS declined YoY, it is more in line with the company’s recent performance and expectations. If anything, it shows that the company is stabilizing. The company’s digital transformation products and solutions continue to be in demand, as shown by the addition of 7 new clients during the quarter. The company also expanded 52 of its existing partnerships.
The management is anticipating a low double-digit growth in fiscal 2026 and that is where the recent price surge comes from. The deals that the company has in the pipeline can easily account for 25% of the revenue guidance for 2025. Good execution could mean beating estimates is a given as the company’s own guidance is quite conservative. A few large deals, which can’t be ruled out given the quality of the company’s GenAI solutions, could make the stock skyrocket.
Another way to look at the stock, and to evaluate the risk, is to ask why the company hasn’t been able to close any of the 20 deals it has in the pipeline. This is a valid question to ask and raises doubts over the management’s business execution. However, if the investor is willing to bet on the management, the rewards could be massive.
Overall, WNS ranks 2nd on our list of mid-cap IT stocks outperforming the market in 2025. While we acknowledge the potential of WNS as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as WNS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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