Alight, Inc. (NYSE:ALIT) Insulates Itself From Short-term Market Swings

Alight, Inc. (NYSE:ALIT) is one of the Most Undervalued Stocks Under $10 to Buy Now. The company continues to benefit from a long-cycle recurring business model, which has insulated it from short-term market swings. This is because Alight, Inc. (NYSE:ALIT) already has 92% of the projected 2025 revenue under contract. The company remains focused on securing the remaining renewals in this cycle and commercial execution throughout both recurring and project revenue. While it is exposed to the market impacts, the company remains optimistic regarding the operational levers within its control and has reaffirmed its outlook basis the resilience of its model and visibility.

Alight, Inc. (NYSE:ALIT) expects revenue in the range of $2,318 million – $2,388 million, and adjusted EBITDA of between $620 million – $645 million in FY 2025. It expects FCF of between $250 million – $285 million. The company’s revenue declined 2.0% to $548 million as compared to $559 million in the prior-year period. This was mainly because of lower project revenue as well as net commercial activity. Furthermore, its recurring revenues were 94.9% of the total revenue.

Alight, Inc. (NYSE:ALIT) provides integrated, cloud-based human capital solutions, empowering clients and employees to manage health, wealth, and HR needs.

While we acknowledge the potential of ALIT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.