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 $115.5 million.
  • WDAY is up 2.8% 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 22 analysts that rate Workday a buy, 3 analysts rate it a sell, and 13 rate it a hold.

The average volume for Workday has been 2.0 million shares per day over the past 30 days. Workday has a market cap of $14.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.10 and a short float of 15.4% with 11.57 days to cover. Shares are down 4.6% 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 significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 36.4% when compared to the same quarter one year ago, falling from -$59.47 million to -$81.13 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.
  • The share price of WORKDAY INC has not done very well: it is down 15.67% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • WORKDAY INC's earnings per share declined by 31.3% 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 -$1.53 versus -$1.35 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$1.53).
  • The gross profit margin for WORKDAY INC is currently very high, coming in at 76.05%. Regardless of WDAY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WDAY's net profit margin of -25.08% significantly underperformed when compared to the industry average.

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