Trade-Ideas LLC identified

Workday

(

WDAY

) as a post-market leader 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 $176.5 million.
  • WDAY is up 2.4% 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 18 analysts that rate Workday a buy, no analysts rate it a sell, and 19 rate it a hold.

The average volume for Workday has been 2.1 million shares per day over the past 30 days. Workday has a market cap of $11.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.88 and a short float of 9.4% with 4.18 days to cover. Shares are down 25.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Workday as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Software industry average. The net income has significantly decreased by 29.9% when compared to the same quarter one year ago, falling from -$59.91 million to -$77.81 million.
  • 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.
  • Looking at the price performance of WDAY's shares over the past 12 months, there is not much good news to report: the stock is down 36.79%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • WORKDAY INC's earnings per share declined by 24.2% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse 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 (-$0.05 versus -$1.35).
  • The gross profit margin for WORKDAY INC is currently very high, coming in at 73.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -25.48% is in-line with the industry average.

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