Your free edition of today’s BLI Newsletter is presented by:

Sponsored by

Despite flying under the radar for many investors, Alight’s recent strategic moves and technological advancements make it a compelling buy for those looking into AI-focused stocks. We also don’t mind the fact that the company has steadily grown FCF from $143 million in 2020 to $226 million in 2022 with even more gains expected this year.

Recently, Alight announced a significant strategic move: the divestiture of its Payroll and Professional Services business for up to $1.2 billion. 

This decision is not merely about streamlining operations—it's a calculated enhancement of Alight's focus on its AI-powered platform, specifically Alight Worklife. This sale will also bolster the company's financial health, significantly reducing debt and increasing cash reserves, thereby strengthening its balance sheet and enabling further investment in AI technologies​​.

Moreover, the strategic sale is expected to increase Alight's EBITDA margins substantially, positioning the company for sustained profitability and making it an even more attractive investment​​.

Alight Worklife® is the cornerstone of the company’s promise and performance. The latest release introduces AI-driven workforce support, comprehensive benefits management, and holistic financial and wellbeing capabilities designed to elevate the employee experience and generate increased ROI for employers​​. With enhancements like the Alight LumenAI™, which incorporates Generative AI and large language models into its suite, Alight is setting new standards in the industry.

This platform not only streamlines administrative processes but also brings cutting-edge benefits and financial management solutions directly to employees' fingertips. These offerings range from advanced healthcare navigation tools to integrated financial wellness resources, all powered by AI to provide personalized, actionable insights.

Despite the presence of competitors with similar technological capabilities, Alight maintains a dominant market share. This is largely due to its comprehensive service offerings and high switching costs associated with its platforms. Such barriers to exit create a sticky customer base and provide Alight with a reliable revenue stream.

Furthermore, Alight is expanding its reach to medium-sized employers through its scalable cloud platform, which is anticipated to drive substantial revenue growth in the coming years​​.

Alight stands at the confluence of technological innovation and strategic foresight. With its focus sharpened on AI-driven solutions and a healthier financial structure following its recent divestiture, Alight is uniquely poised for growth. 

This makes ALIT not just a stock to watch, but a top pick for investors looking to capitalize on the integration of AI in enterprise solutions. If you haven't heard of Alight until now, it's time to take a closer look—before more investors catch on to this high-potential opportunity.

Until Next Time,

The Bottom Line Investing Team

Are you ready to take your investing game to the next level?

We empower investors like you with a daily newsletter which includes the insights needed to stay informed and make profitable decisions in the stock market.

Join Millions Who Trust The Early Bird

• Discover daily recommendations

• Unlock hidden opportunities

• Make informed investment decisions

By receiving our #1 stock tip delivered straight to your inbox every day at 6:59 am—completely FREE.

Seize the Opportunity:

Join the ranks of millions of investors who trust The Early Bird. Sign up now to receive today's #1 Trade of the Day and unlock a world of exclusive benefits.

Your success in the market is just one click away!