1 Glorious Growth Stock Down 42% You'll Regret not Buying on the Dip, According to Wall Street

Core Viewpoint - Workiva is experiencing a significant disconnect between its stock performance and the overall bullish sentiment from analysts, with a strong focus on its growth potential in the software sector, particularly in ESG reporting [1][3][14]. Company Overview - Workiva offers a unique portfolio of software products designed to streamline data aggregation and reporting, which are increasingly critical for businesses [2][4]. - The company's stock has declined by 4% this year and is down 42% from its all-time high in 2021 [2][16]. Business Growth and Financial Performance - Workiva reported a record revenue of $186 million for Q3 2024, marking a 17% increase year-over-year and an acceleration from 15% growth in Q2 [9]. - The company raised its full-year revenue forecast for 2024 by $6 million, now projecting between $733 million and $735 million [9]. - The number of businesses served increased by 4.9% year-over-year, with a notable rise in high-spending customers [10][11]. - Operating expenses increased by only 10% in the first nine months of 2024, leading to a reduced net loss of $46.2 million compared to $123.3 million in the previous year [12]. Market Position and Analyst Sentiment - The majority of analysts covering Workiva have assigned it the highest buy rating, with no sell recommendations [3][14]. - The average price target for Workiva's stock over the next 12 months is $104.3, indicating a potential upside of 14.3% from its current trading price of $91.49 [15]. - The stock's price-to-sales ratio has decreased to a more reasonable 7.1 from around 20 during its peak, reflecting improved valuation amidst consistent revenue growth [16]. Future Growth Potential - Workiva is focusing on ESG reporting, which is a rapidly growing area due to increasing regulatory requirements globally [7][8]. - The company estimates a financial opportunity of $35 billion across various reporting sectors, while its current market capitalization stands at $5.1 billion, indicating substantial growth potential [17].