Blackbaud, Inc. (BLKB), a software provider focusing on nonprofits and educational institutions, is currently trading near a 52-week low of $45 per share, marking a significant decline amid broader software market selloffs related to AI fears. The company’s fundamentals remain strong, with projected sales growth of 4% in FY26 and FY27 and anticipated earnings per share (EPS) increases of 16% this year and 11% in FY27, bringing EPS to $5.76.
Despite the current market trend, Blackbaud’s niche services, which emphasize relationship management and compliance, are less susceptible to AI disruptions. The stock is currently undervalued at just 9 times forward earnings, significantly lower than the S&P 500 and its industry average of 22 times. This mispricing presents a potential buy-the-dip opportunity for investors as the market recovers.
Overall, Blackbaud’s stable customer base and mission-driven approach position it favorably against the backdrop of an indiscriminate tech selloff, making it a compelling option for long-term investors interested in ESG-oriented opportunities.
