APPN - Appian: Valuation Erosion Is A Strong Argument For This Stock Even As Growth Slows Down
2024-07-04 08:22:43 ET
Summary
- Appian has slid recently on slowing growth, but the company is showing surprisingly strong net revenue retention rates.
- The stock's YTD slide has taken it to a bargain-basement ~3x FY25 revenue multiple, which gives investors a major layer of safety.
- In the long run, the company still benefits from companies' desire to automate more and more tasks to save on redundant headcount costs.
The stock market is hovering at all-time highs, with AI fervor compounded by hopes of a more dovish Fed pushing stocks to what I believe are untenable valuation multiples. Amid these market conditions, I continue to emphasize focusing on "growth at a reasonable price" stocks that can weather potential broad-based downside....
Appian: Valuation Erosion Is A Strong Argument For This Stock, Even As Growth Slows Down