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15 handpicked stocks

The HR Tech Takeover: AI-Driven Consolidation

SAP's acquisition of SmartRecruiters highlights a major consolidation trend in the HR technology sector, driven by the demand for AI-powered talent management. This creates an investment opportunity focused on other specialized HR tech companies that are potential acquisition targets or key partners for large enterprise software vendors.

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Han Tan | Market Analyst

Updated 1 day ago | Published at August 4

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

SAP

SAP SE

SAP

Current price

$276.61

Leading enterprise software provider driving HR tech consolidation through strategic acquisitions like SmartRecruiters.

WDAY

Workday, Inc.

WDAY

Current price

$226.09

Cloud-based human capital management leader competing in the AI-powered talent management space.

ADP

Automatic Data Processing, Inc.

ADP

Current price

$303.28

Established payroll and HR services giant with extensive automation and analytics capabilities.

About This Group of Stocks

1

Our Expert Thinking

SAP's acquisition of SmartRecruiters signals a major acceleration in HR technology consolidation. Large enterprise software providers are racing to build comprehensive, AI-powered talent management solutions, creating significant opportunities for both consolidators and potential acquisition targets in this rapidly evolving sector.

2

What You Need to Know

This group includes both major consolidators like SAP, Oracle, and Workday, alongside specialised HR tech companies that could become attractive acquisition targets. The integration of artificial intelligence into talent management platforms has become a competitive necessity, driving M&A activity across the human capital management sector.

3

Why These Stocks

These companies were handpicked by professional analysts based on their strategic positioning in the HR tech consolidation trend. They represent either established players with acquisition capabilities or innovative specialists offering niche technologies that could unlock significant value through strategic partnerships or buyouts.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year.

If you invested across these assets:

in 12 months it could be worth:

$1,000.00

+16.40%

Group Performance Snapshot

16.4%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 16.4% over the next year.

8 of 14

Stocks Rated Buy by Analysts

8 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🤖

AI Revolution in HR

Artificial intelligence is transforming talent management, making these companies essential players in the future of work. The race to integrate AI capabilities is driving unprecedented consolidation activity.

🎯

M&A Goldmine Potential

With SAP's SmartRecruiters acquisition setting the tone, smaller specialised HR tech companies could become attractive takeover targets. This creates significant upside potential for strategic acquisitions.

📈

Enterprise Demand Surge

Companies are investing heavily in comprehensive HR platforms to attract and retain talent. This growing demand is fuelling revenue growth across the entire HR technology ecosystem.

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