- Asana (ASAN) is under pressure and has been pushed down to an attractive price point.
- At the same time, Asana has a global market presence and high-conviction products.
- Investors should consider a “buy on weakness” strategy with ASAN stock.
Headquartered in California, workforce-management software company Asana (NYSE:ASAN) has a broad and geographically diversified client base. ASAN stock looks like a real bargain at the current price point and deserves the attention of technology-market value seekers.
Sometimes, stocks that are down 75% from their peak are just toxic assets. Other times, they’re great for value investors with an eye for favorable risk-to-reward profiles.
The difference between a falling knife and a good value isn’t the stock itself so much as the company it represents. Informed investors should get into the habit of learning exactly what a company does, then determining whether it’s a solid revenue generator or not.
After conducting some deep due diligence, you should find that Asana is on the right side of this equation. It’s a financially solid business, with the data points to prove it. Furthermore, Asana has carved out a market niche and is truly a unique software company for the 2020s.
| ASAN | Asana | $20.88 |
What’s Happening with ASAN Stock?
ASAN stock definitely fits into the category of shares that have fallen into the buy zone. The stock has been as high as $145.79 during the past 12 months, but recently traded at just $30 and change.
This suggests that, as long as the company meets other essential criteria, Asana looks like a worthwhile investment today. Sometimes, Wall Street just overcorrects to the downside, and buying during peak pessimism can pay you handsomely.
What makes ASAN stock worth owning for the long term? First of all, Asana isn’t your typical software business. Its products help companies achieve organization-wide clarity as remote workers, unfortunately, don’t always function well as a team.
Now that remote and hybrid work are commonplace, Asana is a well-timed business. Among its platform’s most interesting features is the Workflow Builder, which helps to “Create more efficient workflows by using a visual tool to connect teams, organize work, and streamline projects in one single place.”
Another notable feature is Automation, which allows organizations to “Streamline processes, make sure your team doesn’t miss critical steps, and deliver value faster.” Plus, there are other features that Asana deploys to enhance a team’s alignment, coordination, visibility and security.
Big Market Presence, Big Revenue Growth
Amazingly, Asana’s global footprint spans 190 countries on several continents. It also comprises over 119,000 paying customers, with 42% of the company’s revenue coming from outside of the U.S.
In other words, while Asana is a U.S.-based company, its reach is truly international. Again, we’re finding out quickly that Asana isn’t a run-of-the-mill software business.
By now, you might be surprised by the sharp decline in ASAN stock, since the company offers so much value to its many customers. Still, there are fiscal criteria to consider. For example, is Asana a strong revenue generator?
The company’s most recently issued quarterly and full-year financial press release should answer that question definitively. How does 64% year-over-year (YOY) revenue growth sound to you?
That’s right: in fiscal 2022, Asana managed to grow its revenue to $378.4 million, marking a 67% increase. And focusing just on the fiscal fourth quarter, Asana’s revenue rose 64% YOY to $111.9 million.
Plus, the company retained some very big spenders. Specifically, during the fiscal fourth quarter, Asana’s number of customers spending $50,000 or more on an annualized basis grew to 894, representing an increase of 125% YOY.
What You Can Do Now With ASAN Stock
Clearly, Asana has the financial data to back up a bullish thesis for investors. Knowing this, it might surprise you to discover that ASAN stock is as cheap as it currently is.
It’s hard to know how long this window of opportunity will stay open. Therefore, you’re invited to consider a long position in Asana before the prevailing pessimism turns to widespread optimism.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
