1 Glorious Growth Stock Down 48% to Buy Hand Over Fist, According to Wall Street

Key Points

Workiva developed a platform to help businesses unify all of their data from across the dozens of digital applications they use each day. Workiva introduced artificial intelligence to its platform earlier this year, which is helping customers accelerate their workflows. Wall Street has reached a very bullish consensus on Workiva stock, and it might be completely justified based on the company's growth, and its big addressable market. 10 stocks we like better than Workiva ›

Managers inside large, modern organizations are often tasked with overseeing hybrid workforces with employees stationed all over the globe. Preparing reports for executives or even regulators has become a very inefficient and time-consuming process, because the necessary data is typically spread across dozens of digital applications.

Workiva(NYSE: WK) is on a mission to solve that problem. Its platform connects to most storage, productivity, and finance applications so managers can see all of their critical data in one place. During the third quarter of 2025 (ended Sept. 30), demand for the platform from large, high-spending organizations accelerated, which prompted management to increase its full-year revenue forecast.

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Workiva stock is still trading 48% below its 2021 record high, when a frenzy in the technology sector drove it to an unsustainable valuation. However, the majority of the analysts tracked by The Wall Street Journal believe now could be a great time to buy, and here's why their bullish stance might be completely justified.

Image source: Getty Images.

Workiva is using AI to make its platform even more powerful

Once data is pulled onto Workiva's platform, managers can access a portfolio of ready-made templates they can use to compile reports. These templates can be customized to suit the needs of each individual business, and Workiva recently introduced an artificial intelligence (AI)-powered assistant called Workiva AI to help make those adjustments.

For example, let's say a compliance manager needs to add a specific financial disclosure to their company's quarterly earnings filing with the Securities and Exchange Commission. They can input a custom prompt into Workiva AI, and the assistant will draft the disclosure instantly. However, the manager can also tap into Workiva's library of ready-made prompts if they feel a generic solution will suit their needs.

Workiva AI is already familiar with every document the company has stored on the Workiva platform, so it understands context when managers enter prompts. This accelerates workflows because the AI assistant doesn't have to start from scratch whenever it's asked to perform a new task.

High-spending customers are flocking to Workiva

Workiva generated $224 million in total revenue during the third quarter, which was up 21% year over year, and it topped management's forecast range of $218 million to $220 million. The strong result was fueled by two things:

Workiva's net revenue retention rate came in at 114% which matched a multiyear high. It means existing customers were spending 14% more money during Q3 than they were at the same time last year. The number of customers with annual contract values of at least $300,000 and $500,000 soared by 41% and 42% year over year, respectively. Those growth rates accelerated from 37% and 35% during the second quarter, three months earlier.

A record 2,372 of Workiva's 6,541 customers also had contract values of at least $100,000 by the end of the third quarter, highlighting how important the company's platform has become to large, complex organizations.

Following the strong result, Workiva increased its full-year revenue guidance from $871.5 million to $881 million (at the midpoint of the forecast range).

Wall Street is bullish on Workiva stock

The Wall Street Journal tracks 11 analysts who cover Workiva stock, and nine have given it a buy rating. The remaining two are in the overweight (bullish) camp, so no analysts recommend selling.

The analysts have an average price target of $97.60, implying a relatively modest potential upside in the stock of 11% over the next 12 to 18 months. However, the Street-high target of $110 implies a much higher potential return of 25%.

With that said, Workiva values its total addressable market at $35 billion, and based on the company's current revenue, it has barely scratched the surface of that opportunity. Therefore, investors who are willing to hold onto the stock for a longer-term period of three to five years could yield even higher returns than those put forward by Wall Street.

Now might be a good time to buy. Workiva's price-to-sales (P/S) ratio soared to around 20 when its stock peaked in 2021, which wasn't sustainable in the long run. However, the 48% decline in the stock since then, combined with the company's consistent revenue growth, has pushed its P/S ratio down to just 5.6. That's a discount to its average P/S ratio of 7.2 dating back to when Workiva went public in 2014:

WK PS Ratio data by YCharts

In summary, based on Workiva's strong growth, its sizable addressable market, and its attractive valuation, I think Wall Street's bullish consensus is justified.

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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Workiva. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.