This Under-the-Radar Growth Stock Is Down 55%, but Wall Street Is Still Bullish. Here's Why.
2026-10-07 13:09
•Anthony Di Pizio •The Motley Fool
•••••• • Axe Cap view
Why This 55% Off Software Stock Still Has Wall Street Excited
Workiva’s sharp revenue growth and AI push keep bulls on board despite a deep pullback.
Workiva (WK) has taken a beating, down 55% from its peak. For a tech name, that’s a serious correction, but the fundamentals suggest this isn’t just a fallen star. The company’s 19% revenue growth and a 416% jump in adjusted net income aren’t typical in a challenging software sector. Their AI integration is no gimmick; it's helping secure larger contracts from enterprise clients who demand better compliance and data tools. The valuation is attractive, trading well below its five-year average sales multiples. While not listed on the JSE, the USD/ZAR exposure matters—continued rand weakness could cushion some of the dollar-based earnings volatility. South African investors should watch this one via the FX angle or through global software ETFs. The main caution: tech valuations can quickly unravel if growth slows or inflation pressures rise. Still, this looks like an opportunity worth watching. this is just our opinion and not financial advice
Wait to see if Workiva can sustain its profitability gains before buying. In the meantime, consider exposure through USD/ZAR positions to benefit if the rand weakens as global tech demand steadies.
- Workiva (WK)
- USD/ZAR
- slower-than-expected revenue growth
- rand strengthening diminishing FX gains
5/10
Workiva, a software company specializing in regulatory compliance and data aggregation, has seen its stock decline 55% from its 2021 peak but is attracting analyst interest. The company is integrating AI capabilities into its platform to enhance functionality, driving growth among high-spending enterprise customers. With 19% revenue growth, improving profitability, and a valuation discount compared to historical averages, Wall Street analysts remain bullish with an average price target of $89.80, suggesting 26% upside potential.
Our take is based on reporting first published by The Motley Fool.