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Pegasystems Inc. (NASDAQ:PEGA) is one of the top cheap stocks to buy with the biggest upside potential. Pegasystems Inc. (NASDAQ:PEGA) received several rating updates following its fiscal Q1 2026 earnings released on April 21. RBC Capital cut the price target on the stock to $60 from $65 on April 23, maintaining an Outperform rating on the shares and telling investors in a research note that the company delivered mixed fiscal Q1 results. It cited Annual Contract Value and Remaining Performance Obligations metrics, stating that they exhibited signs of deceleration amid tougher comps.

RBC further stated that it believes the quarter was good, but not great, adding that it remains confident in the outlook for continued growth in 2026 and beyond.

Pegasystems Inc. (NASDAQ:PEGA) also received a rating update from Rosenblatt the same day. The firm cut the price target on the stock to $58 from $62 and reiterated a Buy rating on the shares. Rosenblatt told investors that the company delivered a “mixed” fiscal Q1 performance, adding that it is marginally trimming its estimates for FY26-27.

Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, and supports software that enables organizations to deploy, build, and change enterprise applications.

While we acknowledge the potential of PEGA 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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