The technology landscape is evolving at an unprecedented pace, driven by breakthroughs in artificial intelligence (AI), software-as-a-service (SaaS), and widespread adoption of these innovations.

Amid this backdrop, investing in fundamentally stable tech stocks, Nokia Oyj (NOK), Informatica Inc. (INFA), and CCC Intelligent Solutions Holdings Inc. (CCCS) could be a wise move for investors looking to capitalize on the sector’s growth. Priced below $50, these stocks offer an accessible entry point and strong upside potential for investors.

Undoubtedly, the champion of the tech landscape in recent years has been AI. Its widespread usage in various walks of life and integration into different industries has brought wonders for consumers. As the race for the strongest and best AI platform intensifies, big tech companies are set to spend more than $300 billion in 2025 alone.

On the other hand, the sector has also been blessed with the mainstream usage of SaaS products. This growth can be credited to several factors, such as the rise in the adoption of public & hybrid cloud-based solutions, integration with other tools, and centralized data-driven analytics, and more.

With 17,000 companies and 59 million customers worldwide, the United States ranks first in this sector. Additionally, global IT spending is projected to grow by 8.3% this year, reaching $5.44 trillion, owing to increased adoption of cloud solutions, cybersecurity measures, automation, and advanced data management tools.

Now, let us dive deep into the fundamentals of three tech stocks, starting with #3.

Stock #3: Nokia Oyj (NOK)

NOK provides mobile, fixed, and cloud network solutions. The company’s products include fiber and copper-based access infrastructure, mobile technology products and services, IP networking solutions, and more. It has four segments: Network Infrastructure; Mobile Networks; Cloud and Network Services; and Nokia Technologies.

On February 6, NOK announced a collaboration with Vietnam Air Traffic Management Corporation (VATM) to replace the legacy Synchronous Digital Hierarchy (SDH) transport system with NOK’s IP/MPLS technology.

The modernization is aimed at improving security and reliability in the South region of Vietnam and supporting new-age applications needed to operate highly reliable services to serve rapidly growing air traffic.

On February 5, NOK announced a nationwide rollout of its XGS-PON network by StarHub Ltd (SRHBY). The move connects hundreds of thousands of homes across Singapore to 10 Gbps internet speeds.

Opening its path to support bandwidth-hungry applications such as AI, immersive gaming, and advanced security, the rollout strengthens NOK's market position in the Singapore region.

For the fiscal 2024 fourth quarter that ended December 2024, NOK’s net sales increased 10.5% year-over-year to €5.98 billion ($6.24 billion). Its operating profit rose 71.7% from the year-ago value to €917 million ($955.81 million).

Additionally, the company’s profit and EPS for the period amounted to €813 million ($847.41 million) and €0.15, compared to a loss and loss per share for the period of €33 million ($34.40 million) and €0.01 in the previous year’s quarter, respectively.

Analysts expect NOK’s revenue and EPS for the fiscal year ending December 2026 to increase 2.9% and 9.6% year-over-year to $20.73 billion and $0.37, respectively. Also, the company has surpassed consensus EPS estimates in three of the four trailing quarters.

Its shares have surged 11.9% over the past three months and 26.7% over the past six months to close the last trading session at $4.99. In addition, its 12-month price target of $5.70 reflects a 14.2% potential upside.

NOK’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

NOK has an A grade for Value and a B for Momentum. Within the B-rated Technology - Communication/Networking industry, NOK is ranked #9 out of 47 stocks.

To access NOK’s Stability, Quality, Sentiment, and Growth ratings, click here.

Stock #2: Informatica Inc. (INFA)

INFA develops an AI-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at the enterprise scale. The company's platform also offers interoperable data management products, API and application integration products, master data management products, and more.

On January 30, INFA announced the certification of its Intelligent Data Management Cloud platform by the EDM Council. The platform is aimed at empowering companies to migrate to the cloud without compromising their data's security, integrity, and efficiency. This certification could boost the company's user numbers and growth.

On January 14, INFA announced advancements in its continuing partnership with Databricks, a data and AI company. Under the new collaboration, INFA’s Intelligent Data Management Cloud (IDMC) platform will be deeply integrated into Databricks Data Intelligence Platform. The collaboration could empower customers to build enterprise-grade GenAI applications.

For the fiscal 2024 third quarter that ended September 30, 2024, INFA’s total revenues increased by 3.4% year-over-year to $422.48 million. Its non-GAAP income from operations rose 18% from the year-ago value to $151.04 million.

Moreover, the company’s non-GAAP net income and non-GAAP net income per share grew 10.3% and 3.7% from the prior year’s quarter to $88.95 million and $0.28, respectively.

Street expects INFA’s revenue and EPS for the fiscal 2024 fourth quarter, which ended in December 2024, to increase 2.7% and 17.4% year-over-year to $457.04 million and $0.38, respectively. Plus, the company has surpassed consensus revenue and EPS estimates in three of the four trailing quarters.

Shares of INFA surged 4.2% over the past month and 5.9% over the past six months to close the last trading session at $25.17. The stock’s 12-month price target of $31.80 reflects a 26.3% potential upside.

INFA’s strong fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.

INFA has a B grade for Growth, Sentiment, and Quality. Within the A-rated Software - SAAS industry, INFA is ranked #5 out of 18 stocks.

In addition to the POWR Rating highlighted above, you can check INFA’s ratings for Momentum, Stability, and Value here.

Stock #1: CCC Intelligent Solutions Holdings Inc. (CCCS)

CCCS is a software-as-a-service (SaaS) company for the property and casualty insurance economy. The company offers a cloud-based SaaS platform that connects trading partners, facilitates commerce, and supports mission-critical. It also provides CCC insurance solutions, including CCC workflow, CCC estimating, and others.

On February 4, CCCS announced the integration of its CCC Repair Workflow shop management solution with Tekion’s dealer management system, a part of its Automotive Retail Cloud platform. The integration is aimed at helping dealer body shops streamline operations, reduce inefficiencies, and gain access to leading repair management solutions.

On January 6, CCCS announced the acquisition of EvolutionIQ, Inc., a leading platform for AI-powered guidance for disability and injury claims management. The acquisition expands the company’s market reach into strategic adjacencies and strengthens its AI-powered SaaS platform through the addition of transformative AI capabilities.

For the fiscal 2024 third quarter that ended September 30, 2024, CCCS’ revenues increased 7.8% year-over-year to $238.48 million. Its adjusted operating income rose 10.3% from the year-ago value to $91.20 million.

Additionally, adjusted net income and adjusted net income per share attributable to common stockholders grew 9.5% and 11.1% from the prior year’s quarter to $62.58 million or $0.10, respectively.

The consensus revenue and EPS estimates of $245.09 million and $0.10 for the fiscal 2024 fourth quarter that ended in December 2024 exhibit a year-over-year rise of 7.2% and 8.8%, respectively. Additionally, the company has surpassed consensus revenue and EPS estimates in all four trailing quarters, which is noteworthy.

Shares of CCCS have surged 6.6% over the past six months to close the last trading session at $10.94. CCCS’ 12-month price target of $13.67 reflects a 25% potential upside.

CCCS’ POWR Ratings reflect its sound prospects. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.

CCCS has a B grade for Growth and Sentiment. Within the Software - SAAS industry, CCCS is ranked #7 out of 18 stocks.

Click here to access CCCS’ rating for Momentum, Quality, Stability, and Value.

What To Do Next?

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NOK shares rose $0.02 (+0.40%) in premarket trading Friday. Year-to-date, NOK has gained 13.15%, versus a 4.04% rise in the benchmark S&P 500 index during the same period.

Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.

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