NICE Ltd. (NICE): A Bull Case Theory 

We came across a bullish thesis on NICE Ltd. on Value investing subreddit by OrdinaryReasonable63. In this article, we will summarize the bulls’ thesis on NICE. NICE Ltd.’s share was trading at $108.01 as of December 2nd. NICE’s trailing and forward P/E were 12.09 and 9.10 respectively according to Yahoo Finance.

Nice Ltd (NICE) is an Israeli software company founded in 1986, specializing in anti-money laundering (AML), fraud detection, and automated customer service solutions. The company has transitioned to a cloud-first model with its CXone platform hosted on AWS since 2017, serving a range of high-profile clients including PayPal, Wells Fargo, and Bank of America.

NICE reported strong 2024 results, with revenue of $2.7 billion (+15% YoY), operating income of $850 million (+25%), and net income of $442 million (+30.8%). For 2025, the company is guiding for roughly 9% revenue growth and 15% operating income growth, indicating a slight slowdown in growth as the business matures, though the cloud segment continues to expand at 20% YoY.

The company demonstrates robust profitability, with gross margins of 67% and adjusted operating margins of 32%, comfortably passing the Rule of 40 with a combined score of 47% (35.5% on GAAP EBITDA). NICE trades at an EV/EBITDA of ~9 and a P/E of 16.4, with a forward P/E of 10.4, suggesting the market is discounting its slower growth. Stock-based compensation is reasonable at 26% of free cash flow.

NICE’s unique combination of AML/fraud detection and customer service solutions creates a sticky customer base, reflected in a 95% retention rate. While competition exists from Genesys, Five9, and Talkdesk, NICE’s integrated offering differentiates it and could support expansion into underpenetrated markets such as fintech beyond PayPal.

The company is also exploring AI copilots for both fraud detection and customer service, which could drive future growth. Overall, NICE presents a well-capitalized, profitable, and strategically positioned software platform with strong customer loyalty and multiple growth levers, making it an attractive opportunity despite market caution on moderating growth.

Previously we covered a bullish thesis on NICE Ltd. (NICE) by Relevations in January 2025, which highlighted its AI-driven customer experience and financial crime prevention, cloud transition, and growth potential under new CEO Scott Russell. The stock has depreciated ~34.53% since our coverage. The thesis still stands as NICE remains strategically positioned. OrdinaryReasonable63 shares a similar perspective but emphasizes strong 2024 financial results and cloud-based AML/fraud solutions.

NICE Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held NICE at the end of the second quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of NICE 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 NICE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.