Stock of the Day

June 10, 2024

Workday (WDAY)

$256.39
-$5.24 (-2.0%)
Market Cap: $69.59B

About Workday

Workday, Inc. provides enterprise cloud applications in the United States and internationally. Its applications help its customers to plan, execute, analyze, and extend to other applications and environments to manage their business and operations. The company offers a suite of financial management applications to maintain accounting information in the general ledger; manage financial processes, such as payables and receivables; identify real-time financial, operational, and management insights; enhance financial consolidation; reduce time-to-close; promote internal control and auditability; and achieve consistency across finance operations. It also provides spend management solutions that help organizations to streamline supplier selection and contracts, manage indirect spend, and build and execute sourcing events, such as requests for proposals; expense management solutions to submit and approve expenses; and a suite of human capital management applications that enables HR teams to hire, onboard, pay, develop, reskill, and provide employee experiences. In addition, the company offers planning applications; and applications for analytics and reporting comprising augmented analytics to surface insights to the line of business in simple-to-understand stories, machine learning to drive efficiency and automation, and benchmarks to compare performance against other companies. Further, it provides supply chain and inventory solutions to healthcare organizations; solutions to manage the end-to-end student and faculty lifecycle; and Workday Extend for customers and their developers to build custom applications. It serves professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries. The company was formerly known as North Tahoe Power Tools, Inc. and changed its name to Workday, Inc. in July 2005. Workday, Inc. was incorporated in 2005 and is headquartered in Pleasanton, California.

Workday Bull Case

Here are some ways that investors could benefit from investing in Workday, Inc.:

  • Workday, Inc. recently reported earnings per share (EPS) of $1.89, exceeding the consensus estimate of $1.76, indicating strong financial performance and effective management.
  • The company achieved a revenue of $2.16 billion for the last quarter, surpassing expectations and reflecting a 15.8% year-over-year growth, which suggests robust demand for its enterprise cloud applications.
  • With a current stock price of $258.05, Workday, Inc. is positioned within a 12-month high of $311.28, indicating potential for price appreciation as market conditions improve.
  • Analysts have a consensus rating of "Moderate Buy" for Workday, Inc., with an average price target of $292.43, suggesting that many experts believe the stock is undervalued and has room for growth.
  • The company maintains a healthy financial position with a current ratio of 2.05, indicating that it has more than enough assets to cover its liabilities, which is a positive sign for investors regarding liquidity.

Workday Bear Case

Investors should be bearish about investing in Workday, Inc. for these reasons:

  • Insider selling has been significant, with insiders selling 438,819 shares valued at $113,142,592 over the last ninety days, which may signal a lack of confidence in the company's short-term prospects.
  • The stock has a high price-to-earnings (P/E) ratio of 42.79, which may indicate that it is overvalued compared to its earnings, potentially leading to a price correction.
  • Despite recent growth, the company has a beta of 1.35, suggesting that its stock is more volatile than the market, which could pose risks for investors seeking stability.
  • Workday, Inc. has a price-to-earnings-growth (PEG) ratio of 3.78, indicating that the stock may be expensive relative to its expected growth rate, which could deter value-focused investors.
  • Recent downgrades from analysts, such as StockNews.com lowering its rating from "buy" to "hold," may reflect concerns about the company's future performance and could influence investor sentiment negatively.

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