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Why NASDAQ:WDAY Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Mar 18, 2024

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether WORKDAY INC-CLASS A (NASDAQ:WDAY) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but WORKDAY INC-CLASS A has surfaced on our radar for growth with base formation, warranting further examination.

A Closer Look at Growth for NASDAQ:WDAY

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 60.44%, which is quite impressive.
  • The Earnings Per Share has been growing by 33.84% on average over the past years. This is a very strong growth
  • Looking at the last year, WDAY shows a quite strong growth in Revenue. The Revenue has grown by 16.78% in the last year.
  • The Revenue has been growing by 20.80% on average over the past years. This is a very strong growth!
  • WDAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.36% yearly.
  • WDAY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.38% yearly.

How do we evaluate the Health for NASDAQ:WDAY?

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 6 reflects its health status:

  • An Altman-Z score of 5.76 indicates that WDAY is not in any danger for bankruptcy at the moment.
  • WDAY has a better Altman-Z score (5.76) than 74.19% of its industry peers.
  • The Debt to FCF ratio of WDAY is 1.56, which is an excellent value as it means it would take WDAY, only 1.56 years of fcf income to pay off all of its debts.
  • WDAY has a better Debt to FCF ratio (1.56) than 74.55% 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.
  • 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.

Assessing Profitability for NASDAQ:WDAY

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:WDAY scores a 6 out of 10:

  • With an excellent Return On Assets value of 8.39%, WDAY belongs to the best of the industry, outperforming 89.25% of the companies in the same industry.
  • WDAY has a Return On Equity of 17.08%. This is amongst the best in the industry. WDAY outperforms 89.96% of its industry peers.
  • The Return On Invested Capital of WDAY (1.27%) is better than 70.25% of its industry peers.
  • WDAY has a better Profit Margin (19.02%) than 89.96% of its industry peers.
  • The Operating Margin of WDAY (2.53%) is better than 70.97% of its industry peers.
  • The Gross Margin of WDAY (75.59%) is better than 70.25% of its industry peers.

How do we evaluate the setup for NASDAQ:WDAY?

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 7:

WDAY has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 267.52, a Stop Loss order could be placed below this zone.

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.

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

Keep in mind

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.



NASDAQ:WDAY (5/24/2024, 7:04:17 PM)

After market: 220.68 -0.23 (-0.1%)


-39.99 (-15.33%)


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