If any stock should be bucking the general trend in early March and moving higher, it is Guidewire (NYSE: GWRE). The company’s Q2 results are tepid relative to the consensus ahead of the release, but the bar was set high: the company is growing, earnings quality improved, and guidance was raised. In this scenario, the stock price plunge that the release catalyzed is a disconnection from reality, putting the stock at a deep value relative to its growth outlook.
[content-module:CompanyOverview|NYSE:GWRE]It is hard to see the value relative to the 2025 earnings estimates. Trading at nearly 90x its 2025 earnings forecasts, the company is more than 3x more expensive than the S&P 500 and more than double the leading tech names. However, the analysts are forecasting a solid double-digit CAGR through 2035 that puts this stock near 10x its earnings, and the forecasts are likely too light.
