Motley Fool says to buy mid-cap AI stock Workiva, 47% off peak, 'hand over fist'

Investors should take advantage of the falling share price of Workiva, a mid-cap developer of an AI platform for financial and risk management, advises Anthony Di Pizio, a contributing analyst at the Motley Fool. The company’s stock is trading almost 50% off its all-time high, while revenue continues to expand faster than forecasts, and a huge addressable market leaves room for further upside.

Di Pizio recommends investors buy Workiva shares "hand over fist in October." The AI platform’s stock is now worth 47% less than its 2021 peak, when a frenzy in the tech sector drove its valuation to unsustainable levels. At that time, the shares traded at a price/sales multiple of about 20, the analyst explains. The subsequent decline in their market value, coupled with consistent revenue growth, has brought the P/S down to about 6, a level Di Pizio considers reasonable.

He predicts the multiple will trend higher from here, potentially exceeding its long-term average of 7.3 if revenue growth continues to accelerate.

Di Pizio points to Workiva’s financial performance and vast addressable market as the main arguments in favor of his "buy" call. In the second quarter, Workiva generated $215 million in total revenue, up 21% year over year, beating guidance.

The company’s net revenue retention rate reached a multiyear high of 114%, meaning existing clients were spending 14% more on the platform than a year earlier. The number of customers with annual contract values of $100,000 or more increased 27% in the second quarter. Over the past four years, that group has grown at a CAGR of 30%, underscoring the platform’s importance for large and complex organizations, Di Pizio notes.

Following the strong second-quarter results, Workiva raised its full-year 2025 revenue forecast to $870-873 million, about 1% above the previous guidance. But that figure, Di Pizio stresses, still represents only a fraction of Workiva’s $35 billion total addressable market, which gives the company ample room for expansion.

The company’s stock has 11 ratings from Wall Street analysts, all "buys" or recommendations equivalent to a "buy," according to MarketWatch. The average target price is $97.60 per share, implying 14% upside from the last close of $87.02 per share.

The AI translation of this story was reviewed by a human editor.