Workday (WDAY): Today's Post-Market Laggard
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Workday as such a stock due to the following factors:
- WDAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $106.2 million.
- WDAY is down 6.9% today from today's close.
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More details on WDAY:
Workday, Inc. provides enterprise cloud applications for finance and human resources in the United States and internationally. It offers applications for customers to manage critical business functions that enable them to optimize their financial and human capital resources. Currently there are 19 analysts that rate Workday a buy, no analysts rate it a sell, and 12 rate it a hold.
The average volume for Workday has been 1.6 million shares per day over the past 30 days. Workday has a market cap of $9.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.53 and a short float of 10.7% with 8.37 days to cover. Shares are up 2.5% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Workday as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, WORKDAY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- WDAY has underperformed the S&P 500 Index, declining 13.29% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income has decreased by 0.3% when compared to the same quarter one year ago, dropping from -$69.22 million to -$69.42 million.
- WORKDAY INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WORKDAY INC reported poor results of -$1.35 versus -$1.00 in the prior year. This year, the market expects an improvement in earnings (-$0.08 versus -$1.35).
- Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.92 is very high and demonstrates very strong liquidity.
- You can view the full Workday Ratings Report.
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