SaaS stocks near 52-week lows may present selective opportunities for disciplined, long-term investors. A quality screen highlights large-cap names with strong ROA and improving valuation metrics. Adobe and FICO rank highest under a modified Magic Formula framework.
The Alger Mid Cap 40 ETF underperformed the Russell Midcap Growth Index during the fourth quarter of 2025. Exact Sciences Corporation, Micron Technology, Inc. and MongoDB, Inc. were among the top contributors to performance. Roblox Corp., Nebius Group, and Robinhood Markets, Inc. were among the top detractors from performance.
The severity of the pullback in software stocks in recent days, driven by fears of advances in artificial intelligence disrupting the industry, has created opportunities for investors to position for a rebound in higher-quality stocks, strategists at JP Morgan said.
J.P. Morgan says fears of an AI-driven software wipeout are overblown and highlights 19 stocks—from Microsoft to CrowdStrike—it believes are positioned to rebound.
The software and services industry's recent plunge has ignited fears that the artificial intelligence boom may be reshaping markets in unexpected ways, raising questions about whether a rotation out of technology stocks signals trouble ahead for the AI trade.
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