NASDAQ:WDAY—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether WORKDAY INC-CLASS A (NASDAQ:WDAY) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but WORKDAY INC-CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Examination for NASDAQ:WDAY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:WDAY has earned a 8 for growth:

• WDAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.18%, 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 33.84% on average per year.
• Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 17.00% in the last year.
• Measured over the past years, WDAY shows a very strong growth in Revenue. The Revenue has been growing by 20.80% 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 25.38% yearly.
• Based on estimates for the next years, WDAY will show a quite strong growth in Revenue. The Revenue will grow by 17.07% on average per year.

Understanding NASDAQ:WDAY's Health Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:WDAY, the assigned 7 reflects its health status:

• An Altman-Z score of 5.01 indicates that WDAY is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.01, WDAY is in the better half of the industry, outperforming 71.17% of the companies in the same industry.
• The Debt to FCF ratio of WDAY is 1.50, which is an excellent value as it means it would take WDAY, only 1.50 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of WDAY (1.50) is better than 69.71% of its industry peers.
• WDAY has a Debt/Equity ratio of 0.37. 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 2.00 indicates that WDAY has no problem at all paying its short term obligations.
• A Quick Ratio of 2.00 indicates that WDAY has no problem at all paying its short term obligations.
• WDAY has a Quick ratio of 2.00. This is in the better half of the industry: WDAY outperforms 60.22% of its industry peers.

Profitability Insights: 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 6 out of 10:

• WDAY has a Return On Assets of 9.33%. This is amongst the best in the industry. WDAY outperforms 87.59% of its industry peers.
• The Return On Equity of WDAY (18.23%) is better than 88.69% of its industry peers.
• With a decent Return On Invested Capital value of 1.83%, WDAY is doing good in the industry, outperforming 70.07% of the companies in the same industry.
• The Profit Margin of WDAY (19.67%) is better than 87.23% of its industry peers.
• Looking at the Operating Margin, with a value of 3.53%, WDAY is in the better half of the industry, outperforming 70.44% of the companies in the same industry.
• The Gross Margin of WDAY (75.64%) is better than 68.98% of its industry peers.

How do we evaluate the setup for NASDAQ:WDAY?

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:

Although the technical rating is bad, WDAY does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 215.57. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 209.47, a Stop Loss order could be placed below this zone.

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.

Keep in mind

This article should in no way be interpreted as advice. 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.