10 Best Big Data Stocks To Buy Now

03. Workiva Inc. (NYSE:WK)

Average Analyst Share Price Target Upside: 26.81%

Average Analyst Share Price Target: $99.17 

Workiva Inc. (NYSE: WK) has an average analyst share price target of $99.17, reflecting an upside potential of 26.81% as of August 16. Workiva Inc. (NYSE:WK) reported robust Q2 results on August 1, with an 18% increase in subscription revenue and a 15% rise in total revenue, driven by strong demand for ESG reporting solutions. The company introduced Workiva Carbon for carbon accounting and acquired Sustain.Life. Workiva Inc. (NYSE:WK) also authorized a $100 million share repurchase program and raised its revenue forecast, aiming for over $1 billion by 2027. Despite a $97 million drop in cash due to acquisitions and cautious macroeconomic outlook, Workiva Inc. (NYSE:WK) improved operating profit and strategic investments position it well for continued growth in the ESG sector.

Despite its stock trading 54% below its 2021 peak, it appears undervalued given its strong growth and profitability. Workiva Inc. (NYSE:WK) software integrates with major applications to streamline data aggregation and reporting, with notable demand for its ESG solutions as global regulations tighten. The company has seen substantial growth in high-spending customers and improved profitability, making its current stock price an attractive opportunity for investors.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Workiva Inc. (NYSE:WK) in its fourth quarter 2023 investor letter:

“Among the wide variety of Information Technology companies, we prefer critical system providers, specialized component designers, and systems that improve productivity or efficiency for their clients. Posting a 0% return—lagging the benchmark sector average of 14%—was Workiva Inc. (NYSE:WK), a leading cloud-based compliance and regulatory reporting platform. Workiva’s revenues exceeded expectations, though its earnings were lower because of a one-time interest expense. The relative share price weakness stemmed from management’s conservative guidance for its final fiscal quarter that incorporated the uncertain macroeconomic environment and Workiva shedding some low-margin businesses. Meanwhile, the company signed new customers and released updates to current financial reporting systems that should lead to better margins and further improve Workiva’s profitability.”