Pleasanton, California-based Workday, Inc. (WDAY) is an enterprise cloud software company that provides cloud-based applications for Human Capital Management (HCM), financial management, planning, and analytics. Valued at a market cap of $58.9 billion, the company offers a unified, AI-driven platform that helps medium and large enterprises manage HR operations, payroll, talent management, accounting, procurement, budgeting, and workforce planning.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and WDAY fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - application industry. The company has become a leading provider of modern ERP alternatives, helping organizations improve efficiency, make data-driven decisions, and streamline core business processes in the cloud.
This software company has dipped 21% below its 52-week high of $283.68, reached on Feb. 6. Shares of WDAY have gained marginally over the past three months, underperforming the Nasdaq Composite ($NASX) 7% rise during the same time frame.
In the longer term, WDAY has declined 18.5% over the past 52 weeks, considerably lagging behind NASX’s 17.8% uptick over the same time frame. Moreover, on a YTD basis, shares of WDAY are down 13.2%, compared to NASX’s 22.2% return.
To confirm its bearish trend, WDAY has been trading below its 200-day moving average since late May, with minor fluctuations, and has remained below its 50-day moving average since early November.
On Nov. 25, WDAY released better-than-expected Q3 results, yet its shares plunged 7.9% in the following trading session. Due to strong growth in subscription revenue, the company’s total revenue improved 12.6% year-over-year to $2.4 billion, surpassing consensus estimates by a slight margin. Moreover, its adjusted EPS came in at $2.32, up 22.8% from the year-ago quarter and 8.9% ahead of analyst expectations.
WDAY has also lagged behind its rival, SAP SE (SAP), which declined 3.4% over the past 52 weeks and dropped marginally on a YTD basis.
Despite WDAY’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 40 analysts covering it, and the mean price target of $275.92 suggests a 23.2% premium to its current price levels.
