Why is Guidewire Software (GWRE) One of the Best Strong Buy Growth Stocks to Buy According to Hedge Funds?

Guidewire Software, Inc. (NYSE:GWRE) is one of the best strong buy growth stocks to buy according to hedge funds. On January 13, Guidewire Software, Inc. (NYSE:GWRE) and Vaudoise announced that Vaudoise has become the first Swiss insurer to go-live on the Guidewire Cloud Platform, with the company successfully implementing Guidewire ClaimCenter and continuing the integration of Guidewire PolicyCenter. The adoption of the Guidewire Cloud Platform would allow Vaudoise to join a global community of insurers with a focus on insurance excellence, equipped with core modernization from a secure, scalable, and rapidly updateable cloud delivery model.

Arno Suess, Head of P&C Claims at Vaudoise, stated that the milestone has helped set a new benchmark for the industry, allowing it to process motor insurance claims faster with increased automation and fully digital processes through the Guidewire Cloud Platform.

In another development, Wells Fargo cut the price target on Guidewire Software, Inc. (NYSE:GWRE) to $250 from $275 on January 8 and maintained an Overweight rating on the shares, stating that it believes AI to still be “the name of the 2026 game”. The firm sees three primary ways to play the game: innovation, infrastructure, and incumbents. It acknowledged that while adoption is likely to be uneven, secular trends will ultimately drive 2026 performance. Guidewire Software, Inc. (NYSE:GWRE) also received a rating update from RBC Capital on January 5, which reiterated a Buy rating on the shares and set a price target of $300.

Guidewire Software, Inc. (NYSE:GWRE) provides a technology platform that combines core systems of record with analytics, digital, and AI applications. The company’s offered suite of products includes the following: Guidewire InsuranceSuite and Guidewire InsuranceNow.

While we acknowledge the potential of GWRE 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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