Pleasanton, California-based Workday, Inc. (WDAY) is an enterprise cloud software company that provides cloud-based applications for Human Capital Management (HCM), financial management, planning, and analytics. Valued at a market cap of $58.9 billion, the company offers a unified, AI-driven platform that helps medium and large enterprises manage HR operations, payroll, talent management, accounting, procurement, budgeting, and workforce planning.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WDAY fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - application industry. The company has become a leading provider of modern ERP alternatives, helping organizations improve efficiency, make data-driven decisions, and streamline core business processes in the cloud.
This software company has dipped 21% below its 52-week high of $283.68, reached on Feb. 6. Shares of WDAY have gained marginally over the past three months, underperforming the Nasdaq Composite ($NASX) 7% rise during the same time frame.
In the longer term, WDAY has declined 18.5% over the past 52 weeks, considerably lagging behind NASX’s 17.8% uptick over the same time frame. Moreover, on a YTD basis, shares of WDAY are down 13.2%, compared to NASX’s 22.2% return.
To confirm its bearish trend, WDAY has been trading below its 200-day moving average since late May, with minor fluctuations, and has remained below its 50-day moving average since early November.
On Nov. 25, WDAY released better-than-expected Q3 results, yet its shares plunged 7.9% in the following trading session. Due to strong growth in subscription revenue, the company’s total revenue improved 12.6% year-over-year to $2.4 billion, surpassing consensus estimates by a slight margin. Moreover, its adjusted EPS came in at $2.32, up 22.8% from the year-ago quarter and 8.9% ahead of analyst expectations.
WDAY has also lagged behind its rival, SAP SE (SAP), which declined 3.4% over the past 52 weeks and dropped marginally on a YTD basis.
Despite WDAY’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 40 analysts covering it, and the mean price target of $275.92 suggests a 23.2% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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