Why NASDAQ:WDAY Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Feb 2, 2024

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.

Assessing Growth for NASDAQ:WDAY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:WDAY boasts a 8 out of 10:

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.
The Earnings Per Share has been growing by 28.23% on average over the past years. This is a very strong growth
The Revenue has grown by 17.45% in the past year. This is quite good.
WDAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.73% yearly.
The Earnings Per Share is expected to grow by 30.21% on average over the next years. This is a very strong growth
Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 18.07% on average per year.

A Closer Look at Health for 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 6.96. This indicates that WDAY is financially healthy and has little risk of bankruptcy at the moment.
WDAY has a better Altman-Z score (6.96) than 76.26% 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.
WDAY has a Debt to FCF ratio of 1.89. This is in the better half of the industry: WDAY outperforms 74.46% of its industry peers.
WDAY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
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.
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 60.79% 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 61.51% of the companies in the same industry.

Profitability Assessment of 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:

With a decent Return On Assets value of 0.48%, WDAY is doing good in the industry, outperforming 73.02% of the companies in the same industry.
With a decent Return On Equity value of 1.01%, WDAY is doing good in the industry, outperforming 74.82% of the companies in the same industry.
WDAY has a better Return On Invested Capital (0.12%) than 69.06% of its industry peers.
With a decent Profit Margin value of 0.96%, WDAY is doing good in the industry, outperforming 73.38% of the companies in the same industry.
WDAY's Operating Margin of 0.22% is fine compared to the rest of the industry. WDAY outperforms 69.06% of its industry peers.
WDAY has a Gross Margin of 74.74%. This is in the better half of the industry: WDAY outperforms 68.70% of its industry peers.

Why is NASDAQ:WDAY a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:WDAY is 7:

Besides having an excellent technical rating, WDAY also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 292.43, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Check the latest full technical report of WDAY for a complete technical analysis.

Keep in mind

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.