Stock of the Day

June 10, 2024

Workday (WDAY)

$237.68
-$1.95 (-0.8%)
Market Cap: $63.98B

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.:

  • The current stock price is around $241, which reflects a recent increase of 1.9%, indicating positive market sentiment.
  • Workday, Inc. reported a quarterly revenue of $2.24 billion, surpassing analyst expectations, showcasing strong financial performance.
  • The company has a consensus rating of "Moderate Buy" from analysts, suggesting a favorable outlook for potential investors.
  • Workday, Inc. has demonstrated a year-over-year revenue growth of 12.6%, indicating robust business expansion and demand for its services.
  • With a market capitalization of approximately $64.54 billion, Workday, Inc. is positioned as a significant player in the enterprise cloud applications market.

Workday Bear Case

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

  • The stock has a high price-to-earnings (P/E) ratio of 133.56, which may indicate that it is overvalued compared to its earnings.
  • Insider selling has been notable, with significant shares sold recently, which could signal a lack of confidence from company executives.
  • Despite recent growth, the company has a relatively low net margin of 5.60%, suggesting that profitability may be a concern.
  • Workday, Inc. has a beta of 1.21, indicating that its stock price is more volatile than the market, which could pose risks for investors.
  • There is one sell rating among analysts, which may indicate some skepticism about the company's future performance.
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