ASGN Inc (ASGN) came out with quarterly earnings of $1.15 per share, missing the Zacks Consensus Estimate of $1.18 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.54%. A quarter ago, it was expected that this staffing company would post earnings of $1.22 per share when it actually produced earnings of $1.31, delivering a surprise of +7.38%.Over the last four quarters, the compan ...

TaskUs, Inc. (NASDAQ:TASK) is one of the Most Undervalued Tech Stocks to Buy in 2026. Wall Street is bullish on the stock; analysts’ 12-month price target reflects more than 42% upside from the current level. However, recently, on December 23, Maggie Nolan from William Blair reiterated a Hold rating on the stock without disclosing any price targets. The analyst noted that the hold rating is based on some fundamental challenges faced by TaskUs, Inc. (NASDAQ:TASK), including fewer working days, margin press ...

Core Viewpoint - The article discusses the 10 most undervalued tech stocks to buy in 2026, emphasizing the ongoing health of the AI trade and the significant capital expenditure by major tech companies in infrastructure development [2][3][4]. Industry Insights - Doug Clinton from Intelligent Alpha indicates that the AI trade remains robust, with recent market pullbacks viewed as necessary for the technology sector [2]. - The "Mag 7" tech companies are projected to increase capital expenditures by approximately 35% in 2026, with potential growth reaching 50% [3]. - High valuations in technology stocks are attributed to reinvestment of free cash flow into infrastructure, although there are still undervalued opportunities in the sector [3]. Methodology for Stock Selection - The list of undervalued tech stocks was created using the Finviz Stock Screener, Seeking Alpha, and Insider Monkey's hedge fund database, focusing on stocks with a forward P/E ratio under 15 [6]. - The methodology emphasizes the importance of hedge fund interest, as imitating top hedge fund picks has historically led to market outperformance [7]. Company-Specific Highlights - **NICE Ltd. (NASDAQ:NICE)**: - Forward P/E Ratio: 9.46, with 22 hedge fund holders [8]. - Analysts maintain a positive outlook despite expected lower gross margins due to strategic investments in cloud and AI [9]. - The company anticipates a 200 basis point reduction in margins but expects long-term benefits from its investments [10]. - **TaskUs, Inc. (NASDAQ:TASK)**: - Forward P/E Ratio: 7.33, also with 22 hedge fund holders [11]. - Analysts project over 42% upside potential, but recent challenges have led to a hold rating [12]. - Despite near-term difficulties, the company is expected to return to growth with modest margin improvements by 2027 [13].

Core Insights - C3.ai, Inc. introduced Agentic Process Automation in Q2 FY26, significantly expanding the deployment and scaling of enterprise AI applications [1][7] - The new offering allows for encapsulation of full business and industrial processes through autonomous AI agents, which can be defined in natural language and deployed rapidly [1] - This launch is seen as a major enhancement to the operational use cases supported by the platform, moving enterprise AI from experimentation to production environments [1][4] Product Development - Agentic Process Automation operates across multiple data sources, systems, and workflows, contrasting with traditional robotic process automation (RPA) that relies on rigid routines [2] - The platform supports broader enterprise workflows by enabling automation at the process level rather than just the task level, without altering the core architecture [2] Market Strategy - The new automation capability fits within C3.ai's existing go-to-market model, with initial production deployments serving as the primary entry point for customers [3] - Management indicated that the agentic automation does not change customer conversion timelines or monetization mechanics, but is an incremental capability that can be layered onto existing deployments [3] Future Outlook - C3.ai views Agentic Process Automation as part of a broader roadmap to transition enterprise AI into a core operating capability that delivers measurable economic value [4] - While no immediate financial impact was quantified, the contribution of agentic automation will depend on customer adoption and execution as deployments progress [4] Financial Performance - C3.ai's shares have declined 25.5% over the past three months, compared to a 4.9% decline in the industry [5] - The company trades at a forward price-to-sales ratio of 6.15, significantly below the industry average of 15.95 [9] - The Zacks Consensus Estimate for C3.ai's fiscal 2026 loss per share has widened, with projections indicating a 192.7% year-over-year plunge in earnings [11][12]

Company Overview - PSquared Asset Management acquired 635,084 shares of TaskUs valued at approximately $11.34 million as of September 30, representing 9.0% of the fund's reportable U.S. equity assets [2][3][7] - TaskUs reported a revenue of $1.14 billion and a net income of $81.43 million for the trailing twelve months [5] - The current share price of TaskUs is $11.51, reflecting a 32% decline over the past year [4][5] Business Performance - TaskUs experienced a 17% year-over-year revenue increase, reaching a record $298.7 million in the latest quarter [11] - The adjusted EBITDA margin for TaskUs was maintained at 21.2%, which is among the best in the industry [11] - Free cash flow for the quarter was reported at $42 million, converting about two-thirds of EBITDA into cash [11] Market Position and Strategy - TaskUs provides digital outsourcing services, including customer care, trust and safety solutions, content security, and AI data labeling for global enterprises [9][10] - The company serves clients across various sectors in the digital economy, such as e-commerce, fintech, and gaming, positioning itself as a competitive partner for fast-scaling enterprises [10] - Despite trading at a valuation that suggests structural decline, TaskUs is generating durable cash and expanding into higher-value work, indicating potential for future growth [12][13]

Core Insights - C3.ai, Inc. is entering a significant phase of operational reset, with federal bookings becoming a crucial aspect of its near-term strategy [1] - Federal, defense, and aerospace bookings surged by 89% year-over-year, accounting for approximately 45% of total bookings during Q2 fiscal 2026, despite a 43-day U.S. government shutdown impacting procurement [1][7] Group 1: Federal Demand and Partnerships - The strong performance in federal bookings is attributed to sustained demand from government agencies that are reassessing their technology needs and prioritizing commercial off-the-shelf AI solutions [2] - C3.ai has secured new and expanded agreements with various federal entities, including the Department of Health and Human Services and multiple military organizations, focusing on data consolidation and AI-driven analytics [2] - Nearly 89% of total bookings in the quarter were achieved through partnerships, indicating deeper collaboration with system integrators aligned with government mandates [3] Group 2: Future Outlook and Financial Metrics - Management emphasized the importance of monitoring bookings as a key performance indicator, especially as execution processes are being reset [4] - Although near-term financial metrics are constrained, the scale of federal demand and increased partner engagement suggest a promising outlook for the federal segment [4] Group 3: Stock Performance and Valuation - C3.ai's shares have decreased by 20.3% over the past three months, compared to a 15.6% decline in the industry [5] - The company trades at a forward price-to-sales ratio of 6.32, significantly lower than the industry average of 13.73 [9] - Projections indicate a potential earnings decline of 195.1% year-over-year for fiscal 2026, contrasting with expected growth for other industry players [13]

Core Insights - SoundHound AI, Inc. (SOUN) is experiencing a stronger financial position as it approaches the end of 2025, with revenue growth across various sectors including restaurants, IoT hardware, enterprise automation, and automotive [1] - The company aims for a "breakeven profitability profile" by 2026, despite elevated operating expenses due to increased sales capacity, R&D investments, and integration costs [2][5] Financial Performance - SoundHound ended Q3 with $269 million in cash and equivalents, no debt, and a gross margin of 59% on a non-GAAP basis [1] - Adjusted EBITDA showed a loss of $14.5 million in Q3, but the company is positioned for profitability at the high end of its revenue outlook [3][5] Revenue Outlook - The full-year 2025 revenue outlook has been raised to $165-$180 million from a previous estimate of $160-$178 million, with a diversified customer base reducing concentration risk [4][8] - The acquisition of Interactions is expected to generate $20 million in annual run-rate synergies as workloads transition to SoundHound's cloud environment [2] Market Position - SoundHound's shares have declined 9.6% over the past three months, contrasting with a 3.1% decline in the industry [6] - The company's stock is trading at a forward price-to-sales (P/S) multiple of 21.06, significantly higher than the industry average of 16.37 [10] Future Projections - Projections indicate a 53.9% rise in earnings for SoundHound in 2026, while competitors are expected to see lower growth rates [13]

Core Insights - Innodata Inc. (INOD) is enhancing its position in the AI ecosystem, aligning with industry demand for high-quality data and integrated AI lifecycle support as major technology companies increase engagement [1] Financial Performance - In Q3 2025, Innodata reported record revenues of $62.6 million, marking a 20% year-over-year growth driven by rising enterprise activity and demand from Big Tech [2][9] - The Zacks Consensus Estimate for Innodata's 2025 earnings has increased to $0.89 from $0.78 in the past 30 days [13] Growth Initiatives - The company has secured $68 million in new pre-training data contracts, including $42 million in signed contracts and an additional $26 million expected soon, which are anticipated to significantly contribute in 2026 [3][9] - Innodata has also obtained a $25 million project with a new strategic federal customer, viewed as the first of several, along with verbal confirmation of a sizable expansion with its largest customer [3] Market Position and Competitors - Innodata operates in a rapidly scaling AI services market, where strong data engineering and model training support are critical [5] - Competitors include TaskUs, which provides outsourced digital operations and data annotation, and EPAM Systems, which leverages its software development and cloud expertise for AI applications [5][6] Stock Performance and Valuation - Innodata's shares have gained 31% in the past six months, outperforming the industry's growth of 4.7% [7] - The company trades at a forward price-to-earnings ratio of 48.82, significantly higher than the industry average of 17.13 [11]

Core Insights - Innodata Inc. (INOD) demonstrated strong financial performance in Q3 2025, with record revenues of $62.6 million, marking a 20% year-over-year growth and a 7% sequential increase, driven by demand from enterprise and Big Tech [1][9] - The company reported an adjusted gross margin of 44% and an adjusted EBITDA of $16.2 million, reflecting a healthy 26% margin [1] - Cash on hand increased to $73.9 million, up from $60 million in the previous quarter, while remaining debt-free, providing strategic flexibility for growth investments [2][9] Growth Outlook - Innodata reaffirmed its revenue growth outlook of 45% or more for 2025, with potential for transformative acceleration in 2026 [3] - The company is enhancing relationships with leading technology firms and securing new multi-year, scalable contracts, which is expected to improve growth visibility [3] - Initiatives in federal AI, pretraining data, and model safety are already contributing to early revenue wins, with expectations for significant ramp-up over the next 12-24 months [3][4] Competitive Landscape - Innodata operates in a rapidly growing AI services market, where data engineering and model training support are crucial [5] - Competitor TaskUs (TASK) is expanding its AI-focused service portfolio, particularly in content safety and data labeling, positioning itself as a credible rival for large-volume enterprise contracts [5] - Another competitor, EPAM Systems (EPAM), leverages its software development and cloud expertise to compete for end-to-end transformation deals, although Innodata specializes in AI data quality and model training workflows [6] Financial Performance and Valuation - Innodata's shares have increased by 81.8% over the past six months, contrasting with a 0.2% decline in the industry [7] - The Zacks Consensus Estimate for INOD's 2025 earnings has risen to 84 cents from 78 cents in the past week [12] - Currently, INOD trades at a forward price-to-earnings ratio of 60.23, significantly higher than the industry average of 16.86 [13]

Digital outsourcing company TaskUs (NASDAQ:TASK) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 17% year on year to $298.7 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $303.4 million was less impressive, coming in 1.4% below expectations. Its non-GAAP profit of $0.42 per share was 10.4% above analysts’ consensus estimates. Is now the time to buy TASK? Find out in our full research report (it’s free for active Edge ...