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Workday to Acquire Evisort for Improved AI Prowess: Stock to Gain?

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Workday Inc. (WDAY - Free Report) recently inked a definitive agreement to acquire the leading AI-based Document Intelligence Platform Evisort for an undisclosed amount. The transaction is expected to be completed by October 2024, subject to customary closing conditions.

Enterprises across industries are generating a vast pool of data, which includes contracts, invoices and policy documents from daily operations. However, a significant portion of this information is unstructured, making it really difficult to categorize them for further analysis. Organizing this large volume of data manually is complex, time-consuming and prone to human errors. Evisort’s AI native documents intelligence technology allows businesses to process this information and generate actionable insights.

With this buyout, WDAY is aiming to integrate Evisort’s AI native solution across its finance and human resource solution suite. This will enhance information accessibility and speed up the process of data extraction, enabling WDAY clients to transfer accurate financial or operational details to the Workday platform directly in a matter of seconds. Evisort tech can also help employees gain a better understanding of the contracts, simplify document creation and keep stakeholders updated about necessary developments. These features will empower enterprises to better evaluate terms and conditions in business documents, leading to improved decision-making.

The solution can bring impressive benefits across a wide range of applications. For instance, supporting supplier contract negotiations, contract risk management activities, compliance issues, and various accounting tasks such as revenue contracts, supplier invoices and asset agreements. Leveraging the capabilities, organizations can unlock the full potential of data, enhance operational efficiency and drive overall business growth.

Will This Acquisition Boost WDAY’s Share Performance?

Organizations are increasingly looking for a solution that can help manage the exponential growth of data that is overwhelming the processing capabilities. The growing proliferation of IoT, online transactions and social media are further propelling the issue. By incorporating Evisort AI native document intelligence technology, WDAY is set to capitalize on this evolving market trend.

Earlier this year, the company completed the acquisition of AI-powered talent orchestration solutions provider HiredScore. WDAY’s acquisitions and product innovation strategies reflect a broader policy of making AI a core element of its product offerings. This strong focus on AI prowess will enhance its market differentiation, increase upselling and cross-selling opportunities and solidify Workday’s position in the finance and human resource management market.

WDAY’s Stock Price Movement

The stock has gained 2.1% in the past year compared with the industry's growth of 33%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

Workday carries a Zacks Rank #2 (Buy) at present.

Arista Networks, Inc. (ANET - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. In the last reported quarter, it delivered an earnings surprise of 8.25%. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

Ubiquiti Inc. (UI - Free Report) carries a Zacks Rank #2 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

Zillow Group, Inc. (ZG - Free Report) , carrying a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 25.81%.

It delivered an earnings surprise of 37.41%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings.

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