3 Beaten-down IT Services Stocks To Buy For A Turnaround In 2022

The year 2021 has witnessed recovery and stability, thanks to the continued impacts of fiscal supports and ramped-up vaccinations that encouraged the economy to reopen steadily. While Omicron and Delta variant cases have raised concerns lately, the gradual resumption of businesses has brought both manufacturing and service activities out of the woods.

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Amid the pandemic, the Technology Services  space has been benefiting from the increasing adoption of emerging technologies, digitization and initiatives to diversify technology services. The ability to offer consumer and business-oriented products and services to well-diversified end markets has been a tailwind for the industry.

How Will IT Services Fare in 2022?

Digitization should remain a strong tailwind for the industry, with most participants focusing on integrating synergies of emerging technologies, including cloud, Internet of Things, artificial intelligence and analytics, to modernize their business processes.

The industry’s growth is expected to accelerate in the days ahead on the increasing number of remote workers. In this era of digital transformation, enterprises are actively seeking a common ground between on-premise and cloud infrastructures that will enable them to provide flexible and easily adaptable hybrid solutions. The pandemic-induced demand for remote working, digital healthcare and online learning solutions has expedited the adoption of digital transformation offerings among enterprises, which bodes well for the industry.

Further, the growing uptake of the multi-cloud model to achieve better scalability and improve resource utilization is also expanding the scope of the industry participants. Cloud and hardware/software virtual technologies are anticipated to favorably impact the industry, going forward. As growth and investment opportunities in developed countries continue to slow down, we believe that emerging economies will play a crucial role in the days ahead.

3 Technology Services Stocks Worth Betting on for 2022

This seems to be the right time to take a look at fundamentally strong technology services stocks, especially when they are available at a cheaper rate. These stocks are now likely to bounce back on favorable developments.

Rocket Companies Inc. (RKT)

Rocket is currently benefiting from its platform strength and business growth, focusing on the technology-driven client experience, product innovation and integrated, end-to-end home buying ecosystem. The company is investing beyond its core mortgage business to boost its newer auto, real estate, personal loans and solar businesses.

Rocket Mortgage recently collaborated with Salesforce to offer "Mortgage as a Service" to financial institutions.

Rocket Companies, Inc. Price, Consensus and EPS Surprise

Rocket Companies, Inc. price-consensus-eps-surprise-chart | Rocket Companies, Inc. Quote

LiveRamp Holdings, Inc. (RAMP)

This enterprise data connectivity platform solutions provider registered 22% year-over-year revenue growth and 15% rise in annual recurring revenues (ARR) in the second quarter of fiscal 2022, driven by strong demand for its offerings globally.

LiveRamp’s business model provides significant operating strength as evident from 1300 basis points year-over-year increase in operating margin in the second quarter. The acquisition of DataFleets earlier this year is expected to significantly expand LiveRamp’s privacy protection capabilities.

LiveRamp Holdings, Inc. Price, Consensus and EPS Surprise

LiveRamp Holdings, Inc. price-consensus-eps-surprise-chart | LiveRamp Holdings, Inc. Quote

Cellebrite DI Ltd. (CLBT)

This digital intelligence solutions provider has witnessed 24% year-over-year revenue growth and 42% ARR rise, driven by continued enhancement and expansion of its digital intelligence platform.

The recently announced acquisition of Digital Clues is expected to fortify Cellebrite’s digital intelligence platform and strengthen its position as an end-to-end technology partner for digitizing the entire investigative workflow. The buyout is expected to expand the company’s footprint within law enforcement intelligence and investigation units worldwide.

Cellebrite DI Ltd. Price, Consensus and EPS Surprise

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