2 Glorious Growth Stocks Down 28% and 73% You’ll Wish You’d Bought on the Dip, According to Wall Street

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The S&P 500 is in a raging bull market. It’s up 26% in 2024, which followed a 26% gain in 2023. It hasn’t delivered back-to-back annual gains that strong since 1997 and 1998 during the dot-com internet bubble.

Large technology stocks like Nvidia and Apple are driving those gains. However, many tech stocks at the smaller end of the spectrum (which sit outside the S&P 500) haven’t performed quite as well. Some still haven’t reclaimed their all-time highs from a few years ago.

Workiva (NYSE: WK) and Bill.com (NYSE: BILL) are two examples. Their respective stock prices are sitting 28% and 73% below their best-ever levels from 2021, but they have posted gains in 2024 and could carry that momentum into the new year.

The majority of the analysts tracked by The Wall Street Journal have assigned the highest-possible buy rating to both Workiva and Bill.com. Here’s why investors might wish they’d bought both stocks when they look back on this moment in the future.

Image source: Getty Images.

Cloud computing empowers businesses to operate online so they can access a global customer base and tap into remote workforces. However, it also means they require dozens or even hundreds of digital applications to run their day-to-day operations, which leads to fragmented workflow. That creates a challenge for managers who have to monitor their teams, gather data, and submit reports to executives or regulators.

Workiva helps them navigate that challenge. Its cloud-based platform plugs into most leading software applications, from Microsoft Excel to Workday, and aggregates their data onto one dashboard. That creates a single source of truth that saves managers from opening multiple applications to find the information they need.

From that point, Workiva provides hundreds of templates so managers can rapidly convert that data into reports for their executive teams or into filings for regulators like the Securities and Exchange Commission (SEC).

Workiva generated a record $186 million in revenue during the third quarter of 2024 (ended Sept. 30), which was a 17% increase from the year-ago period. That growth rate marked an acceleration from 15% in the second quarter, and the strong result prompted management to raise its full-year revenue forecast by $6 million to a range of $733 million and $735 million.

Workiva stock might be down 28% from its all-time high, but it was down by as much as 62%, so it has made up a lot of ground already. But Wall Street is still bullish: The Wall Street Journal tracks 11 analysts covering Workiva stock, and eight have assigned it the highest possible buy rating. One more analyst is in the overweight (bullish) camp, while two recommend holding. None recommended selling.

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