With the rising global demand, supportive government initiatives, and rapid adoption of digital technologies, the tech industry is experiencing significant growth. The market is likely to remain in the attention in the future with innovations like AI, which are revolutionizing organizations’ and consumers’ lives.

Given the industry’s rosy prospects, it could be wise to invest in fundamentally strong tech stocks Informatica Inc. (INFA), N-able, Inc. (NABL), and Upbound Group, Inc. (UPBD), which are currently trading under $50 and look poised for huge upside.

The tech industry is expanding rapidly amid the ever-surging demand for the latest technologies and innovations across various industries globally. This is further fueled by advancements in artificial intelligence (AI) and increasing investment by industry leaders in accelerating their digital transformation.

Driven by growing infrastructure development, IT spending worldwide is also expected to mark a new hike in 2025. Gartner projects worldwide IT spending to reach nearly $5.75 trillion in 2025, reflecting an increase of 9.3% from the current year.

Further, amid the global transformation towards technology, the global information technology market is projected to reach around $26.93 billion by 2032, exhibiting growth at a CAGR of 11%. The market is benefiting from surging demand for digital solutions and the growing role of IT services in enabling organizations to adapt to digitalization.

Also, with the rising adoption of public & hybrid cloud-based solutions, integration with other tools, and centralized data-driven analytics, the global Software as a Service (SaaS) market is expected to grow to $1.23 trillion by 2032 at a CAGR of 18.4%. And the U.S. SaaS market is anticipated to reach an estimated value of $236.69 billion by 2032.

Given these encouraging industry trends, fundamentally strong tech stocks INFA, NABL, and UPBD under $50 could be ideal additions to your portfolio.

Let’s discuss the fundamentals of these stocks in detail:

Informatica Inc. (INFA)

INFA develops an AI-powered platform to connect, manage, and unify data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale globally. Its platform includes a suite of interoperable data management products, like data integration products, to ingest, transform, and integrate data.

On December 10, INFA announced that Yamaha Corporation, a world-renowned leader in musical instrument manufacturing, has selected INFA to implement its Master Data Management (MDM) to unify dispersed data across its enterprise and deliver trusted data and provide AI-powered insights and a contextual 360-degree view of its business.

On November 12, INFA expanded the industry’s first enterprise GenAI-powered data management assistant, CLAIRE GPT, in Europe and the Asia Pacific (APAC) regions, followed by its launch in North America this year. The expansion allows customers more flexibility and accessibility to leverage GenAI-powered data management capabilities.

For the third quarter that ended September 30, 2024, INFA’s total revenues increased 3.4% year-over-year to $422.48 million. Its non-GAAP income from operations stood at $151.04 million, indicating increase of 18% year-over-year. The company’s non-GAAP net income came in at $88.95 million or $0.28 per share, up 10.3% and 3.7% from the prior year’s quarter, respectively.

In addition, the company reported an adjusted EBITDA of $154.79 million, which is 17.1% higher than the prior year’s quarter. Adjusted free cash flow rose 85.5% year-over-year to $107.78 million.

According to the company’s financial guidance for the fourth quarter of 2024, INFA expects total revenues of $448 million to $468 million, reflecting 2.9% year-over-year growth. Its non-GAAP operating income is expected to range from $162 million to $182 million.

For the full year 2024, INFA projects total revenue to range between $1.66 billion and $1.68 billion and its non-GAAP operating income to range from $538 million-$558 million. The company also expects adjusted unlevered free cash flow between $545 million and $565 million.

Street expects INFA’s revenue and EPS for the fourth quarter (ending December 2024) to increase 2.7% and 17.4% year-over-year to $457.02 million and $0.38, respectively. Furthermore, the company surpassed the consensus EPS and revenue estimates in three of the trailing four quarters.

Shares of INFA have soared 8.9% over the past month to close the last trading session at $26.82. Wall Street analysts expect the stock to reach $33.44 in the near term, indicating a potential upside of 24.7%.

INFA’s robust growth prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has a B grade for Growth and Quality. Within the A-rated Software – SAAS industry, INFA is ranked #5 out of 18 stocks.

Click here to access additional ratings of INFA for Value, Stability, Sentiment, and Momentum.

N-able, Inc. (NABL)

NABL offers cloud-based software solutions for managed service providers internationally. Its solutions enable MSPs to support digital transformation and growth within small and medium-sized enterprises. It provides a software platform designed to be an integrated, enterprise-grade solution to serve as an operating system for its MSP partners.

On December 5, NABL unveiled new additions to the technology alliance program to empower partners, enhance efficiency, and capitalize on new cybersecurity opportunities. The company announced that CYRISMA, Cork, vCIOToolbox, and ImmyBot have joined its Technology Alliance Program (TAP) as additional vendors.

The collaboration will strengthen the N-able Ecoverse vision by contributing to the harmonization and transformation of modern IT management. It will also enhance MSPs’ ability to address key industry trends.

On November 20, NABL acquired its existing strategic partner, Adlumin, an enterprise-grade security operations platform provider. The acquisition will allow NABL to incorporate Adlumin’s innovative technology with its industry-leading platform that combines security, unified endpoint management, and data protection solutions.

The acquisition added cloud-native XDR and MDR capabilities to NABL’s end-to-end security and IT management platform.

NABL’s revenue increased 8.3% year-over-year to $116.44 million during the third quarter that ended September 30, 2024. Its non-GAAP gross profit grew 7% from the year-ago value to $96.54 million. The company’s non-GAAP operating income stood at $37.54 million, up 22.9% over the prior year’s quarter.

In addition, the company’s non-GAAP net income and EPS rose 41.3% and 44.4% from the previous-year period to $24.25 million and $0.13, respectively. Its adjusted EBITDA grew 22.7% from the year-ago value to $44.83 million.

NABL currently expects to achieve total revenue in the range of $111.50 million to $113.0 million, representing 3% to 4% year-over-year growth for the fourth quarter of 2024. And its adjusted EBITDA is expected to be $38.0 to $38.5 million.

For the full year 2024, the company projects total revenue of $461.2 million to $462.7 million, indicating 9% to 10% year-over-year growth. Its adjusted EBITDA is set to range from $169.3 million to $169.8 million, representing approximately 37% of total revenue.

Analysts expect NABL’s revenue for the fiscal year (ending December 2024) to increase 9.9% year-over-year to $463.44 million, while its EPS for the same period is expected to grow 23.1% year-over-year to $0.46. Also, the company surpassed the consensus revenue and EPS estimates in all trailing four quarters.

NABL’s shares have plunged 9% over the past month to close the last trading session at $10.11. Wall Street analysts expect the stock to hit $13.68 in the near term, indicating a potential upside of 35.3%.

NABL’s sound fundamentals are reflected in its POWR Ratings. It has an overall rating of B, equating to a Buy in our proprietary rating system.

The stock has a B grade for Value and Stability. Within the B-rated Technology – Services industry, NABL is ranked #15 among the 78 stocks.

In addition to the POWR Ratings we’ve stated above, we also have NABL ratings for Quality, Growth, Momentum, and Sentiment. Get all NABL ratings here.

Upbound Group, Inc. (UPBD)

UPBD leases household durable goods to customers on a lease-to-own basis internationally. The company operates in four segments: Rent-A-Center; Acima; Mexico; and Franchising. The company’s brands, including Rent-A-Center and Acima, facilitate consumer transactions across a range of store-based and virtual channels.

On December 12, UPBD entered into a definitive agreement to acquire Brigit, a leading financial health technology company, for a total consideration of up to $460 million consisting of cash and shares of UPBD’s common stock. The acquisition reflects UPBD’s strategic focus on expanding its technology-driven financial solutions for underserved consumers.

On November 21, UPBD announced an agreement with Google Cloud to deliver advanced AI solutions designed to significantly enhance the experience for customers and expand customer offerings across UPBD’s Acima Leasing® and Rent-A-Center® lines of business.

The collaboration aims to improve UPBD’s omnichannel experience and broaden leasable product offerings.

During the third quarter, which ended September 30, 2024, UPBD reported total revenues of $1.07 billion, up 9.2% from the prior year’s quarter. Its non-GAAP gross profit grew 2.8% from the year-ago value to $511.09 million. The company’s non-GAAP operating profit of $98.21 million reflects growth of 12.7% from the prior year’s quarter.

Furthermore, the company’s non-GAAP net earnings came in at $53.34 million or $0.95 per share, up 18.4% and 20.2% year-over-year, respectively. And its free cash flow increased 39.6% from the year-ago value to $88.26 million.

As per the updated full-year 2024 financial outlook, UPBD expects revenues between $4.20 billion and $4.30 billion, and its adjusted EBITDA excluding SBC is expected to be $470 million – $480 million. The company projects non-GAAP EPS of $3.75 – $3.90. It also expects its free cash flow to range from $100 million to $130 million.

Analysts expect UPBD’s revenue and EPS for the fiscal fourth quarter ending December 2024 to increase 3.8% and 27% year-over-year to $1.06 billion and $1.03, respectively. In addition, the company has topped the consensus revenue and EPS estimates in all of the trailing four quarters.

UPBD’s stock has soared 3% over the past three months to close the last trading session at $31.85. Its 12-month price target of $39.60 reflects a 24.3% potential upside.

UPBD’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.

UPBD has an A grade for Growth and a B grade for Quality. It has topped among the 37 stocks in the Specialty Retailers industry.

Click here to access additional UPBD ratings for Stability, Sentiment, Value, and Momentum.Top of Form

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INFA shares were trading at $26.95 per share on Monday afternoon, up $0.13 (+0.48%). Year-to-date, INFA has declined -5.07%, versus a 29.04% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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