Top 3 Picks
2026 Outlook
The Data Processing sector is poised for robust growth through 2026, fueled by trends such as the proliferation of AI-driven analytics, enhanced data security measures, and the expansion of edge computing. According to industry forecasts, the market could expand at a CAGR of over 20% by 2026, driven by increasing adoption in healthcare, finance, and e-commerce. However, potential challenges like regulatory scrutiny on data privacy may influence investment strategies, making selective stock picks essential for navigating this dynamic landscape.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
SHUTTERSTOCK, INC.
|
65.3 | $18.69 | $744M |
|
2
|
Verisk Analytics, Inc. Common Stock
|
65.0 | $221.02 | $34.9B |
|
3
|
Principal Capital Appreciation Select ETF
|
63.3 | $29.72 | -- |
|
4
|
Urgent.ly Inc. Common Stock
|
63.3 | $2.67 | $5M |
|
5
|
Phunware, Inc. Common Stock
|
62.8 | $1.85 | $55M |
|
6
|
Reddit, Inc.
|
60.3 | $241.89 | $37.9B |
|
7
|
Scienjoy Holding Corporation Class A Ordinary Shares
|
60.0 | $0.71 | $29M |
|
8
|
Forian Inc. Common Stock
|
58.8 | $2.12 | $70M |
|
9
|
ReposiTrak, Inc.
|
58.8 | $11.84 | $287M |
|
10
|
Automatic Data Processing
|
58.4 | $252.88 | $118.1B |
|
11
|
SC WORX Corp
|
58.3 | $0.20 | $3M |
|
12
|
CSG Systems International
|
57.5 | $76.76 | $1.9B |
|
13
|
Innodata Inc.
|
57.4 | $52.99 | $2.6B |
|
14
|
Tucows, Inc
|
57.3 | $22.03 | $203M |
|
15
|
CarGurus, Inc. Class A Common Stock
|
57.2 | $37.65 | $3.7B |
In-Depth Analysis: Top Data Processing Stocks
SSTK
Shutterstock Inc is a U.S.-based company that is engaged in the provision of digital content. The content segment, whose offerings include licenses for Images, Footage, Music, 3 Dimensional, and Generative AI content. Data, Distribution, and Service offerings address customer demand for products and services that are beyond its Content licenses. The company generates the majority of its revenue from Content …
Shutterstock matters in the Data Processing sector as a leading provider of digital content, including images, footage, music, 3D models, and Generative AI offerings, which rely on advanced data processing to deliver scalable solutions for businesses. This positions the company as a key enabler in the digital economy, addressing growing demands for high-quality, AI-enhanced content that supports data-driven applications and content distribution.
Shutterstock's profit margin of 5.9% reflects moderate efficiency in converting revenue to profit, while its ROE of 10.8% indicates solid returns on shareholder equity, suggesting effective financial management. The 3.8% revenue growth and P/E ratio of 11.2 highlight a stable yet undervalued position, implying potential for improved profitability as the company leverages its AI capabilities.
Shutterstock's integration of Generative AI content is poised to capitalize on the expanding AI market by 2026, potentially accelerating revenue growth beyond the current 3.8% as demand for innovative digital assets surges. The stock's P/E ratio of 11.2 offers an attractive entry point for investors seeking undervalued opportunities in the sector, especially with a Tradestie Score of 65.3/100 indicating above-average market strength. Overall, these factors make SSTK a promising investment for long-term gains in the evolving Data Processing landscape.
VRSK
Verisk Analytics is a leading provider of data analytics and proprietary solutions supporting clients within the insurance ecosystem. Verisk operates under a single segment with two separate business units, underwriting and claims. Within underwriting, the company operates as both a statistical agent and advisory organization collecting and aggregating industrywide claims and policy data and providing insurers with pre-approved forms, rules, …
Verisk Analytics matters in the Data Processing sector as a leading provider of specialized data analytics and proprietary solutions for the insurance industry, enhancing risk assessment and operational efficiency for clients. Its dominant role in underwriting and claims services positions it as a key innovator in leveraging big data to support decision-making within a critical economic sector.
Verisk's 30.4% profit margin reflects strong operational efficiency and cost control, allowing it to generate substantial earnings from its revenue streams. Its exceptional ROE of 268.1% indicates highly effective use of equity to produce returns, contributing to robust financial health despite a modest 5.9% revenue growth rate.
Investors should consider buying VRSK stock in 2026 given its high profitability, evidenced by a 30.4% profit margin and 268.1% ROE, which signal potential for sustained earnings growth in the expanding data analytics market. The company's focus on insurance-specific solutions positions it to benefit from increasing demand for AI-driven risk management tools. Furthermore, with a P/E ratio of 34.5, the stock offers a reasonable valuation for a sector leader likely to capitalize on long-term trends in data processing.
LCAP
LCAP, as the Principal Capital Appreciation Select ETF, matters in the Data Processing sector by offering targeted exposure to high-growth companies driving innovations in data analytics, AI, and cloud computing, which are essential for the sector's expansion amid increasing global data demands.
With a Tradestie Score of 63.3/100, LCAP indicates moderate financial health, reflecting a balanced potential for capital appreciation despite limited available financial data that suggests cautious optimism in profitability metrics.
By 2026, LCAP is poised for growth as the Data Processing sector is projected to surge with advancements in AI and big data, potentially driving the ETF's assets to appreciate significantly based on its selection strategy. The Tradestie Score of 63.3/100 signals room for upside in a recovering market, making it an attractive option for investors seeking diversified exposure to emerging technologies. Additionally, LCAP's focus on capital appreciation aligns with anticipated sector-wide revenue increases, offering substantial long-term returns.
ULY
Urgently Inc is a connected mobility assistance software platform, matching vehicle owners and operators with service professionals who deliver traditional roadside assistance, proactive maintenance and repair services. The traditional experience of a vehicle breakdown is often stressful and inconvenient, compounded by processes that lack transparency and to long wait times. Urgently offers an alternative to this traditional experience, leveraging its …
Urgent.ly matters in the Data Processing sector as it utilizes real-time data analytics and IoT to streamline connected mobility services, addressing the growing demand for efficient vehicle assistance in a digital ecosystem. This positions the company as a key player in processing vast amounts of location and diagnostic data, enhancing user experiences in an increasingly connected automotive industry.
Urgent.ly's negative profit margin of -19.6% reflects ongoing operational losses, likely due to high costs associated with technology development and market expansion in the competitive Data Processing sector. Despite this, the -9.1% revenue growth indicates recent declines, suggesting potential challenges in scaling or market penetration that could strain financial health without strategic improvements.
By 2026, Urgent.ly could benefit from the projected expansion of the global connected car market, expected to grow at a CAGR of over 15%, positioning the company for potential revenue recovery and market share gains through its data-driven platform. The Tradestie Score of 63.3 suggests moderate investment appeal, indicating room for upside if the company leverages advancements in AI for predictive maintenance services. Additionally, as vehicle electrification and autonomous driving accelerate, Urgent.ly's role in proactive services may drive user adoption and profitability improvements, making it a speculative buy for growth-oriented investors.
PHUN
Phunware Inc is a software company. It is a cloud platform for mobile that provides companies with the products, solutions, and data and services necessary to engage, manage and monetize its mobile application audiences. It derives maximum revenue from United States. The company has two reportable segments: Software subscriptions and services; and Advertising. It derives maximum revenue from Software subscriptions …
Phunware matters in the Data Processing sector as it provides a specialized cloud platform for mobile applications, enabling companies to effectively engage, manage, and monetize user data, which is critical in an era of increasing mobile data interactions. Its focus on the US market, where it derives maximum revenue, positions it as a key player in leveraging data for targeted mobile strategies amid growing digital engagement demands.
Phunware's negative ROE of -18.7% indicates poor profitability and inefficient use of shareholders' equity, reflecting challenges in generating returns from investments. Additionally, the -6.5% revenue growth highlights declining sales, which could further strain financial health despite a moderate Tradestie Score of 62.8 suggesting some underlying potential.
By 2026, investors should consider PHUN due to the projected growth in the mobile data processing market, driven by rising smartphone adoption and digital advertising, potentially allowing Phunware to reverse its -6.5% revenue decline and capitalize on its core platform strengths. The Tradestie Score of 62.8 indicates a reasonable entry point for a stock in a recovering sector, with opportunities for monetization as mobile user data volumes expand. Furthermore, as a US-centric company, Phunware is well-placed to benefit from evolving data privacy regulations and technological advancements that could enhance its platform's value.
RDDT
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain …
Reddit matters in the Data Processing sector due to its role in handling and analyzing massive volumes of user-generated data from over 430 million monthly active users, facilitating real-time insights, AI-driven moderation, and content personalization. This positions Reddit as a key player in leveraging data for community-driven analytics and trend forecasting, which are critical for sectors like advertising and market research.
Reddit's 18.3% profit margin and 15.2% ROE indicate strong profitability and efficient equity utilization, reflecting a healthy financial foundation. However, with a 67.9% revenue growth rate, the company shows robust expansion, though the high P/E ratio of 107.5 suggests it's priced aggressively based on future growth prospects.
Investors should consider buying RDDT stock in 2026 given its exceptional 67.9% revenue growth, driven by increasing user engagement and advertising revenue, which signals sustained momentum in the data processing space. The company's solid 18.3% profit margin and 15.2% ROE demonstrate effective profitability and capital efficiency, making it attractive for long-term gains. Additionally, as AI and data analytics continue to evolve, Reddit's vast repository of community data could unlock new monetization opportunities, enhancing its valuation by 2026.
SJ
Scienjoy Holding Corp is a provider of mobile live streaming platforms in China and focuses on interactive show live streaming from broadcasters to users. It operates a mobile live streaming business by which it provides live streaming entertainment from professional broadcasters to end-users, allowing for the operation of live social video communities. Using its mobile applications, users can select broadcasters …
Scienjoy Holding Corp matters in the Data Processing sector as it utilizes advanced data processing to handle real-time live streaming for over 10 million users in China, enabling interactive entertainment that processes vast amounts of user data for personalized experiences. This positions the company as a key innovator in data-driven digital platforms, contributing to the sector's growth in emerging markets like China's expanding mobile ecosystem.
Scienjoy's profitability is marginal, with a profit margin of just 0.9% and a return on equity of 0.0%, indicating poor efficiency in converting revenue into profits and generating returns for shareholders. Despite a P/E ratio of 16.2 that suggests reasonable valuation, the -6.9% revenue growth highlights financial strain and potential risks to long-term stability.
By 2026, investors should consider SJ due to the projected expansion of China's live streaming market, expected to grow at a compound annual rate of over 20% amid rising digital adoption, potentially reversing Scienjoy's -6.9% revenue decline. The company's Tradestie Score of 60.0 signals moderate upside potential, and its P/E of 16.2 offers a relatively attractive entry compared to peers, positioning it for gains if it capitalizes on interactive features and user engagement trends.
FORA
Forian Inc provides a suite of Software, data management capabilities, and proprietary data and analytics to optimize and measure operational, clinical, and financial performance for customers within the traditional and emerging life sciences, healthcare payer, and provider segments, as well as cannabis dispensaries, manufacturers, and cultivators.
Forian Inc. matters in the Data Processing sector by delivering specialized software and analytics that enhance operational, clinical, and financial performance in high-growth areas like healthcare, life sciences, and cannabis, addressing critical data needs amid increasing regulatory and market demands. Its impressive 65.6% revenue growth underscores its relevance, positioning it as a key player in leveraging proprietary data for emerging industry segments.
Forian Inc.'s financial health shows challenges with a -3.0% profit margin and -2.9% ROE, indicating current unprofitability and inefficient use of equity, which may stem from high growth investments. However, the 65.6% revenue growth suggests strong top-line expansion that could improve profitability as the company scales operations and achieves cost efficiencies.
Forian Inc.'s 65.6% revenue growth highlights its potential in the expanding data processing demands of healthcare and cannabis sectors, making it an attractive buy for 2026 as these markets continue to grow. The company's Tradestie Score of 58.8 indicates moderate investment appeal with room for upside, supported by its proprietary analytics that could capture greater market share. By 2026, increasing adoption of data-driven solutions in life sciences is likely to drive further revenue acceleration, positioning Forian for enhanced profitability and stock appreciation.
TRAK
ReposiTrak Inc is a software-as-a-service (SaaS) company based in Murray, Utah, specializing in supply chain management solutions for retailers, suppliers, and wholesalers, prominently in the food industry. The company offers three main product suites: ReposiTrak Compliance Management, ReposiTrak Traceability Network, and ReposiTrak Supply Chain Solutions. These platforms help customers comply with food safety regulations, manage supplier compliance documentation, trace products …
ReposiTrak Inc. matters in the Data Processing sector as a specialized SaaS provider that enhances supply chain efficiency through real-time data management and compliance solutions, particularly for the food industry where regulatory and traceability demands are escalating. Its focus on integrating data processing for retailers, suppliers, and wholesalers positions it as a critical enabler of operational resilience amid global supply chain disruptions.
ReposiTrak's 30.8% profit margin and 14.6% ROE indicate strong profitability and efficient use of shareholder equity, reflecting solid financial health in a competitive SaaS landscape. However, with a P/E ratio of 34.1 and a moderate Tradestie Score of 58.8/100, the company shows potential for growth but may face valuation pressures relative to its 9.7% revenue growth.
Investors should consider ReposiTrak in 2026 given its consistent 9.7% revenue growth, driven by increasing adoption of SaaS solutions in supply chain management, which could accelerate with digital transformation trends in the food sector. The company's robust 30.8% profit margin and 14.6% ROE highlight financial stability and scalability, positioning it for potential market expansion and earnings upside. Furthermore, as regulatory compliance demands intensify, ReposiTrak's specialized offerings are likely to capture greater market share, enhancing long-term shareholder value.
ADP
Automatic Data Processing is a global technology company providing cloud-based human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resource outsourcing solutions that permit customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and professional employer organization services. Employer services consist …
ADP matters in the Data Processing sector as a leading provider of cloud-based human capital management solutions, handling critical functions like payroll, talent management, and HR outsourcing for millions of clients globally. Its expertise in processing vast amounts of employee data securely and efficiently positions it as a cornerstone for businesses navigating digital transformation in HR and payroll services.
ADP exhibits strong profitability with a 19.8% profit margin and an exceptional 70.6% ROE, demonstrating efficient use of equity and solid operational performance. While its 7.1% revenue growth indicates steady expansion, the 25.6 P/E ratio and 58.4 Tradestie Score suggest a moderately valued stock with room for continued financial health in a competitive sector.
Investors should consider buying ADP stock in 2026 given its 7.1% revenue growth, which reflects ongoing demand for its HR solutions amid the digital shift in businesses. The company's 70.6% ROE highlights superior profitability and efficient capital management, potentially driving higher earnings and stock appreciation. Moreover, as cloud-based HR technologies expand, ADP's established market leadership could lead to increased adoption and enhanced shareholder returns by 2026.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.