Is NASDAQ:WDAY on the Verge of a Major Breakout as a Strong Growth Stock?

Exploring Growth Potential: WORKDAY INC-CLASS A (NASDAQ:WDAY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and WORKDAY INC-CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected WORKDAY INC-CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NASDAQ:WDAY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:WDAY scores a 8 out of 10:

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

Health Assessment of NASDAQ:WDAY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:WDAY was assigned a score of 7 for health:

• An Altman-Z score of 6.59 indicates that WDAY is not in any danger for bankruptcy at the moment.
• WDAY has a better Altman-Z score (6.59) than 73.29% of its industry peers.
• WDAY has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 1.89, WDAY is doing good in the industry, outperforming 74.37% of the companies in the same industry.
• WDAY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
• Although WDAY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• A Current Ratio of 2.13 indicates that WDAY has no problem at all paying its short term obligations.
• WDAY has a better Current ratio (2.13) than 60.29% 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.
• Looking at the Quick ratio, with a value of 2.13, WDAY is in the better half of the industry, outperforming 61.01% of the companies in the same industry.

Profitability Examination for NASDAQ:WDAY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:WDAY has achieved a 5:

• WDAY has a better Return On Assets (0.48%) than 72.56% of its industry peers.
• The Return On Equity of WDAY (1.01%) is better than 74.37% of its industry peers.
• WDAY's Return On Invested Capital of 0.12% is fine compared to the rest of the industry. WDAY outperforms 68.95% of its industry peers.
• Looking at the Profit Margin, with a value of 0.96%, WDAY is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 0.22%, WDAY is in the better half of the industry, outperforming 68.95% of the companies in the same industry.
• WDAY has a Gross Margin of 74.74%. This is in the better half of the industry: WDAY outperforms 68.59% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:WDAY has a 8 as its setup rating, indicating its current consolidation status.

WDAY has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 276.82. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 272.81, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.