How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Workday (
WDAY Quick Quote WDAY - Free Report) ten years ago? It may not have been easy to hold on to WDAY for all that time, but if you did, how much would your investment be worth today? Workday's Business In-Depth
With that in mind, let's take a look at Workday's main business drivers.
Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (
WDAY Quick Quote WDAY - Free Report) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support. Notably, organizations ranging from medium-sized businesses to Fortune 50 enterprises have opted for Workday solutions. The company also offers open, standards-based web-services application programming interfaces and pre-built packaged integrations and connectors. In second quarter fiscal 2024, the company reported revenues of $1.79 billion. Subscription revenues accounted for 90.5% of total revenues, while professional revenues made up the rest. Apart from Financial Management and Human Capital Management (HCM) solutions, the company offers applications related to Payroll, Time Tracking, Recruiting, Learning, Planning, Professional Services Automation and Student. The company offers Adaptive Insights Business Planning Cloud solutions, Workday Prism Analytics, Workday Data-as-a-Service (DaaS) and Workday Marketplace. Workday Prism Analytics helps in business planning and collaborative approach. Workday Prism Analytics helps customers to bring Workday data and data from any outside source together in order to make better business decisions. Workday DaaS is a cloud service that provides important data to customers which in turn help in decision-making. The company serves technology, financial services, business services, healthcare and life sciences, manufacturing, and consumer and retail industries, as well as education and government industries. Workday ended fiscal 2023 with more than 50% of the Fortune 500 customers. Its peers in HCM market include SAP SE, Oracle Corporation, Automated Data Processing, and Ceridian, among others. Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Workday ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in September 2013 would be worth $3,134.57, or a 213.46% gain, as of September 18, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 163.65% and gold's return of 35.10% over the same time frame.
Analysts are forecasting more upside for WDAY too.
Workday reported impressive second-quarter fiscal 2024 results, with the bottom and the top line surpassing the respective Zacks Consensus Estimate. The company’s cloud-based business model and expanding product portfolio that caters to use cases in diverse sets of industries such as finance, healthcare and defense are driving the top line. Robust cash balance highlights Workday’s financial flexibility and capability to pursue growth initiatives. Focus on AI integration is a tailwind. However, the ongoing trend to invest more in cloud solutions exposes Workday to the risk of losing existing “on-premise customers”, likely impacting its top-line performance. Lack of end market diversification exposes it to various market risks. Challenging macroeconomic conditions and shift in demand patterns are likely to impact profitability.
The stock has jumped 7.33% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.