Is Agilysys, Inc. (AGYS) the Best Oversold NASDAQ Stock to Buy in 2025?

Key Takeaways

• Agilysys, Inc. (NASDAQ:AGYS) has plunged -43.91% YTD, making it an oversold stock with 48.89% upside potential according to analysts.
• The company provides cloud-based SaaS solutions for the hospitality industry, including hotels, resorts, and cruise lines.
• Analysts from Craig-Hallum, Oppenheimer, and Needham maintain Buy ratings, with price targets up to $100.
• Hedge funds hold AGYS, with 20 institutional investors backing the stock as of Q4 2024.

Market Outlook: Why Oversold Stocks Like AGYS Could Rebound

On April 28, Wells Fargo Wealth & Investment Management CIO Darrell Cronk appeared on CNBC’s Squawk on the Street to discuss market conditions. His key insights:

• Growth concerns outweigh inflation fears in the current market.
• Tariffs are inflationary but not sustained—price resets are a one-time shock, not a long-term trend.
• The Fed must balance rate cuts carefully—an emergency cut could signal hidden economic risks.
• Earnings guidance is weakening, with only 20% of S&P 500 companies providing forward outlooks—a red flag for investors.

Given this backdrop, oversold stocks like AGYS could present a buying opportunity if market sentiment shifts.

Why Is Agilysys (AGYS) Down in 2025?

Agilysys, Inc. (NASDAQ:AGYS) provides hospitality software solutions, including:
✅ Cloud-native SaaS platforms for hotels, resorts, and cruise lines
✅ Point-of-sale (POS) systems, inventory management, and payment processing
✅ Property management systems (PMS) for large-scale hospitality operations

• Temporary slowdown in POS sales (expected to recover in 2-3 quarters).
• Broader tech sector pullback affecting SaaS stocks.

Analysts Remain Bullish on AGYS

Multiple analysts reaffirm Buy ratings on AGYS:

Analyst Firm    Rating    Price Target    Date
Craig-Hallum    Buy    Maintained    April 28, 2025
Oppenheimer    Buy    $90               April 9, 2025
Needham          Buy    $100              March 5, 2025

Needham’s Mayank Tandon highlights:

• AGYS operates in a $16 billion addressable market.
• 25%+ annual subscription revenue growth expected.
• Expanding EBITDA margins as sales leadership strengthens.

Hedge Fund Interest in AGYS

As of Q4 2024, 20 hedge funds held AGYS, signaling institutional confidence.

Why follow hedge fund activity?

• Our research shows mimicking top hedge fund picks can outperform the market.
• Our newsletter strategy (selecting 14 stocks quarterly) has returned +363.5% since 2014, beating the S&P 500 by 208 percentage points.

Is AGYS the Best Oversold Stock to Buy?

While AGYS has strong upside potential, AI stocks may offer higher short-term returns.

? Looking for a cheaper AI stock with explosive growth?
Check out our report on the most undervalued AI stock trading under 5x earnings.

Final Verdict: Should You Buy AGYS Now?

✅ Pros:

• 48.89% upside potential based on analyst targets.
• Strong SaaS business model in the growing hospitality tech sector.
• Institutional backing from 20 hedge funds.

⚠️ Risks:

• Near-term volatility in tech stocks.
• Delayed recovery in POS sales.

AGYS ranks #11 on our list of oversold NASDAQ stocks—worth watching for a rebound.