<div id="readability-page-1">Since late 2022, the big story in tech has been artificial intelligence. Generative and agentic AI didn’t just capture headlines – they have been the main driver of market gains and the booster rocket for the tech sector more broadly.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> But the gains have not been evenly spread, and not every tech company has been reaping the rewards. Post-COVID, the software sector, especially the SaaS segment, saw a slump, and hit bottom in late 2022 – just as AI was gearing up. Investors since then have focused on AI, with the obvious result: software hasn’t quite recovered, and the segment has underperformed in 2025. For software companies, the question now is whether they can successfully pivot their products and business models toward an AI-first future. The sector has faced a similar crossroads before during the shift to cloud computing, and history shows that not everyone makes it through the transition. BTIG analyst Nick Altmann has been tracking this evolution closely – and in select corners of the software space, he sees reasons to be constructive. “While software stocks have been pressured, our analysis suggests the fundamentals tell a different story. Measuring the ‘true’ underlying &amp; forward-looking growth across our coverage (TTM sub. Billings, ARR, etc.) shows relatively stable growth over the last ~2 years while FCF margins have continued to improve. And other metrics (i.e. NRR) are actually showing reacceleration across a number of names in our coverage… With valuations attractive and a number of companies already having blessed CY26E estimates, we believe software stocks can have a rebound year in CY26,” Altmann opined. Putting this view into concrete terms, Altmann has recommended three beaten-down software stocks as Buys for the coming months. They are headed for a rebound, he says; and we can take a look at the TipRanks data, and his comments, to decide if these software names are right for today’s market. OneStream (OS) OneStream, the Michigan-based enterprise software firm, with a focus on the financial services sector, is the first software stock we’ll look at here. The company bills itself as ‘the operating system for modern finance,’ and offers its customers a cloud-based AI platform that lets its users reconcile data and manage workarounds, freeing up time and energy for their more vital business functions. OneStream boasts that its finance platform is unique in the industry. It features embedded AI, as an automation tool, and unifies financial and operational data. The system is adaptable, capable of evolving to meet the changing needs of each customer’s business. The company states that its platform brings quantifiable advantages, including a 54% time reduction in closing books, a 72% reduction in data management cycles, and a 75% improvement in reporting cycles. Those capabilities – to adapt, and to bring measurable gains – are a major selling point for OneStream, and the company currently has over 1,700 customers on its books, served by over 1,600 employees. The company has operations in more than 45 countries – it has a presence in the Americas, Europe, and the Asia-Pacific region. We should note here that OneStream’s stock has been falling this year. The shares are down approximately 36% for the year-to-date, even as revenues and earnings have been trending upwards. A look at the last earnings report, which covered 3Q25, brings more detail to the earnings and revenues. The company reported revenue of $154.3 million, up 19% year-over-year and almost $6 million better than had been expected. The bottom line, the non-GAAP EPS, came to 8 cents, beating the forecast by 6 cents per share. And, also of interest, the company’s free cash flow jumped year-over-year, from $1.3 million to $4.8 million. Watching OneStream from BTIG, Nick Altmann sees plenty of potential for growth here, writing of the company, “Despite shares underperforming YTD, OS is set to grow &gt;20% in FY25E, and a large, under-digitized TAM (~$50B) provides OS with significant runway to drive continued growth durability over the MT. We believe investors remain concerned over potential disruption to application software from GenAI, though we see the Office of the CFO as more insulated vs. other areas of apps and see OS’ platform as well-positioned to drive further digitization in the office of the CFO given its data-centricity (increasingly important), extensible architecture, and broadening AI solution set.” The analyst goes on to explain why this stock should make a good portfolio addition, adding to the above, “Moreover, we remain upbeat on OS’ opportunity to capture market share within the Commercial segment, and our checks suggest its new CPM Express product solves down-market pain-points, and we see an opportunity for greater Commercial bookings activity to help not only formulate a more durable growth profile but also provide better bookings uniformity as Enterprise transformation remains lumpy. Lastly, while we remain encouraged on OS’ opportunity to drive continued top-class growth, a rapidly improving FCF profile should provide valuation support. As such, we see a compelling risk vs. reward profile in both the near term and the medium term…” These comments back up Altmann’s Buy rating on the shares, while his $25 price target implies a one-year gain of 37.5%. (To watch Altmann’s track record, click here) OneStream’s shares are selling for $18.18, and the $28.27 average target price indicates a 55.5% gain for the coming year. The stock’s Strong Buy consensus rating is based on 14 reviews, including 13 Buys and 1 Hold. (See OS stock forecast)</div>

BTIG analyst Nick Altmann sees potential for a rebound in the software sector, particularly in SaaS, despite recent underperformance. He highlights three software stocks, including OneStream, which offers a cloud-based AI platform for financial services. OneStream's stock is down 36% YTD, but revenues and earnings are up. Altmann believes OneStream is well-positioned for growth due to its unique platform and large market potential.

These 3 Beaten-Down Software Stocks Could Be Setting Up for a Rebound, Says Analyst