The technology sector is having a fantastic year, with the Nasdaq Composite (NASDAQINDEX: ^IXIC) up by 30% so far. Many of the largest stocks in the tech sector are doing even better, like Nvidia, which has soared by 209%.
But not every tech stock is participating in the rally. Workiva (NYSE: WK), for example, offers a unique portfolio of software products to help companies streamline data aggregation and reporting, which are becoming increasingly important business functions. Its stock is down 4% this year, and it’s down 42% from its all-time high, which was set during the tech frenzy in 2021.
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The underperformance in Workiva stock hasn’t deterred Wall Street. The majority of the analysts tracked by The Wall Street Journal have assigned it the highest-possible buy rating, and not a single one recommends selling. Its business is growing nicely, and its stock currently trades at an attractive valuation, so here’s why investors might want to follow the analysts’ lead.
Technologies like cloud computing are helping businesses of all sizes to run their operations online. That enables them to access a global customer base and to tap into remote workforces, which are big positives. However, it also means businesses need to use dozens or even hundreds of digital applications every day, which leads to fragmented workflows.
That creates a nightmare for managers in terms of monitoring progress, gathering data, and compiling reports. Workiva solves that problem with its cloud-based platform, which plugs into almost every leading productivity and storage application, and aggregates their data onto one dashboard.
That means managers don’t have to track data through each individual piece of software — whether employees are using Alphabet‘s Google Drive, Microsoft Excel, or Salesforce. It can all be aggregated through Workiva.
From there, it offers hundreds of templates to help managers quickly convert that data into reports for executives, or submit regulatory filings to the Securities and Exchange Commission, which is very useful for publicly traded companies.
The company is now using its expertise to focus on environmental, social, and governance (ESG) reporting, which is a fast-growing global opportunity. Governments all over the world continue to introduce new rules that require organizations to report their impact on the environment and society, and Workiva’s ESG tool helps them track carbon emissions, workforce diversity, and similar metrics.
