NASDAQ:WDAY—A High-Growth Stock Gearing Up for Its Next Upward Move.

Last update: Dec 18, 2023

In this article, we'll take a closer look at WORKDAY INC-CLASS A (NASDAQ:WDAY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, WORKDAY INC-CLASS A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Exploring NASDAQ:WDAY's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:WDAY was assigned a score of 8 for growth:

WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.35%, which is quite impressive.
Measured over the past years, WDAY shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.23% on average per year.
Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 17.45% in the last year.
Measured over the past years, WDAY shows a very strong growth in Revenue. The Revenue has been growing by 23.73% on average per year.
WDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.21% yearly.
Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 17.65% on average per year.

Health Insights: NASDAQ:WDAY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:WDAY has earned a 7 out of 10:

WDAY has an Altman-Z score of 6.50. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
WDAY's Altman-Z score of 6.50 is fine compared to the rest of the industry. WDAY outperforms 76.07% of its industry peers.
The Debt to FCF ratio of WDAY is 1.89, which is an excellent value as it means it would take WDAY, only 1.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.89, WDAY is doing good in the industry, outperforming 74.64% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that WDAY is not too dependend on debt financing.
Even though the debt/equity ratio score it not favorable for WDAY, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
WDAY has a Current Ratio of 2.13. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a better Current ratio (2.13) than 60.36% of its industry peers.
WDAY has a Quick Ratio of 2.13. This indicates that WDAY is financially healthy and has no problem in meeting its short term obligations.
WDAY has a better Quick ratio (2.13) than 61.07% of its industry peers.

Profitability Analysis for NASDAQ:WDAY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:WDAY has earned a 5 out of 10:

WDAY has a better Return On Assets (0.48%) than 72.50% of its industry peers.
Looking at the Return On Equity, with a value of 1.01%, WDAY is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
The Return On Invested Capital of WDAY (0.12%) is better than 68.93% of its industry peers.
The Profit Margin of WDAY (0.96%) is better than 73.21% of its industry peers.
With a decent Operating Margin value of 0.22%, WDAY is doing good in the industry, outperforming 68.93% of the companies in the same industry.
WDAY has a better Gross Margin (74.74%) than 68.93% of its industry peers.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:WDAY this score is currently 8:

Besides having an excellent technical rating, WDAY also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 272.69, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of WDAY

Our latest full technical report of WDAY contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.