Workday, Inc. (WDAY), headquartered in Pleasanton, California, provides enterprise cloud applications in the United States and internationally. With a market cap of $67.3 billion, the company offers a suite of financial management applications to maintain accounting information, manage financial processes, identify real-time financial, operational, and management insights, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Workday perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics & research industry. As a leading SaaS provider, WDAY benefits from its massive portfolio of solutions and its massive customer base consisting of professional and business services, financial services, healthcare, education, government, technology, media, retail, and hospitality industries.
Despite its notable strength, WDAY slipped 14.7% from its 52-week high of $294, achieved on Dec. 9. Over the past three months, WDAY stock declined 6.9%, compared to the Technology Select Sector SPDR Fund’s (XLK) 11.3% decline over the same time frame.
In the longer term, shares of WDAY gained 2.2% over the past six months, outperforming XLK’s 6.1% decline over the past six months. However, the stock declined 9.6% over the past 52 weeks, falling short of XLK’s 2.8% returns over the last year.
WDAY has been trading above its 200-day moving average since mid-March but under its 50-day moving average since early March.
WDAY shares declined 2.5% following its Q4 earnings release on Feb. 25. The company reported a 15% increase in its total revenue, which amounted to $2.2 billion. The growth could be attributed to a 15.9% increase in its subscription revenue, which amounted to $2 billion alone. Additionally, the company’s EPS amounted to $0.48, falling short of the Wall Street estimates by 18.6%.
Its top rival, Salesforce, Inc. (CRM), has also been struggling, surging 1.9% over the past six months and declining 8.1% over the past year,
Further, Wall Street analysts are cautious about WDAY’s prospects. The stock has a consensus “Moderate Buy” rating from the 36 analysts covering it, and the mean price target of $310.82 suggests a potential upside of 23.9% from current price levels.
