Adeia(ADEA) ZACKS·2025-05-16 12:51Industry Overview - The technology services industry is mature with strong demand for services, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, supporting stable dividends for most players [1] - The industry thrived in 2024 and continued its momentum into the first quarter of 2025 [1] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with companies rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [4] Investment Outlook - The Zacks-defined Technology Services industry ranks within the top 26% of Zacks Ranked Industries, indicating an expectation to outperform the market over the next three to six months [2] - Five mid and small-sized technology services stocks with strong short-term upside potential are recommended: Byrna Technologies Inc. (BYRN), Climb Global Solutions Inc. (CLMB), Adeia Inc. (ADEA), Priority Technology Holdings Inc. (PRTH), and Ivanhoe Electric Inc. (IE) [2][3] Company Highlights Byrna Technologies Inc. (BYRN) - Engaged in developing and selling less-lethal personal security solutions across multiple regions [6] - Average short-term price target indicates a potential increase of 48.6% from the last closing price of $25.53, with a target range of $33-$38 [8] - Expected revenue and earnings growth rates for the current year are 30.2% and 12.9%, respectively [9] Climb Global Solutions Inc. (CLMB) - Operates as a value-added IT distribution and solutions company [10] - Average short-term price target suggests a potential increase of 26.2% from the last closing price of $110.28, with a target range of $136 [13] - Expected revenue and earnings growth rates for the current year are 5% and 2.7%, respectively [14] Adeia Inc. (ADEA) - Operates as a media and semiconductor intellectual property licensing company [16] - Average short-term price target indicates a potential increase of 25.2% from the last closing price of $13.75, with a target range of $17-$18 [18] - Expected revenue and earnings growth rates for the current year are 9.2% and 7.1%, respectively [18] Priority Technology Holdings Inc. (PRTH) - Functions as a payment technology company with multiple segments [20] - Average short-term price target suggests a potential increase of 71.6% from the last closing price of $7.46, with a target range of $10-$16 [24] - Expected revenue and earnings growth rates for the current year are 11.4% and over 100%, respectively [25] Ivanhoe Electric Inc. (IE) - Focuses on minerals exploration and development, particularly for electrification [27] - Average short-term price target indicates a potential increase of 105.9% from the last closing price of $6.85, with a target range of $10-$20 [28] - Expected revenue and earnings growth rates for the current year are 2.6% and 51.4%, respectively [28]