From Cabot Wealth Advisory 2/17/14 Sign up for Cabot Wealth Advisory—it's free
Workday (WDAY), which has been publicly traded since October 2012, offers Cloud-based enterprise software solutions. It’s already a major thorn in the side of Oracle and SAP and it has the potential to be a major long-term winner. Here’s what Mike Cintolo wrote about the stock in Cabot Top Ten Trader back on January 6.
“Despite being started by the founder of PeopleSoft, Workday is not your traditional software developer. The company is one of the many potentially disruptive start-ups that offer Cloud-based enterprise software solutions. Workday is horning in on SAP’s and Oracle’s markets, focusing on applications for human capital management and financial functions, including payroll, time tracking, expense management, analytics and financial management. The company’s full suite of Cloud applications are extremely easy to use and are updated rapidly, on average, three times a year, providing great value to customers. In fact, Workday’s customer satisfaction rate is an impressive 97%. Many investors were initially concerned that Workday would be a one-trick pony in the human resources market, but the company laid those worries to rest during its third-quarter earnings report on Nov. 26. During the quarter, Workday added 10 financial customers, as well as 50 new enterprise software customers. What’s more, those buying financial services also signed on for the company’s core HR software offerings as well. The strong uptake resulted in a 76% jump in revenue for the quarter, and prompted Workday to boost its fourth-quarter guidance well above analyst expectations. With analysts projecting the total addressable market for Workday software (both financial and HR) in the billions, the company has compelling growth potential.”
When Mike wrote that, the stock was trading at 85, and it’s had a nice gain since then. The fourth-quarter earnings report is likely out next week, and while there’s no doubt that growth will be impressive, the question, as with any growth company, is whether it will be impressive enough. In any event, the stock is likely to move.
So, you could simply buy here and hope for the best—but what I really recommend is that you become regular reader of Mike’s advice, so you always know what he’s thinking.
Every week, Mike presents 10 stocks that have great profit potential, and every week, he gives you follow-ups on all stocks that are still being watched. For active growth investors, there’s no better resource. Click here for more information.
6230 Stoneridge Mall Road
Pleasanton, California 94588
Index Membership: N/A
Industry: Application Software
Full Time Employees: 2,300