Cloud-based software maker Workday is one of the leading companies trying to help employers connect with candidates. On Thursday the Relative Strength Rating for Workday stock climbed to 72, up from 64 the day before.
Despite a significant drop in the number of people seeking unemployment benefits, there is still a huge disconnect between the number of people seeking jobs and the number of jobs seeking people.
Workday Stock Poised For Another Big Run?
The 72 RS Rating means that Workday stock's price has outperformed 72% of all stocks over the past year. Workday stock ran up sharply from a 107.75 low in late March 2020 as the Covid crash bottomed, to a 282.77 high on Feb. 16 this year as companies starting rehiring. It's basically moved sideways since then and closed at 271.11 Thursday, up 1.7% as it tries to run higher.
Stocks that go on to make the biggest gains often have an 80 or better RS Rating in the early stages of their moves. See if Workday can continue to rebound and clear that threshold. Among other key ratings, Workday boasts a 94 EPS Rating, and a near-best 97 Composite Rating, of 99. Its B Accumulation/Distribution Rating, on an A+ to E scale shows that institutional investors are buying its shares.
Earnings for the maker of human resources and finance software grew 49% to $1.23 per share last quarter, and EPS growth ranged from 46% to 98% the prior three stanzas. Workday's revenue grew 19% year over year in its most recent quarter, to $1.26 billion. That's the highest growth rate in the last four quarters.
Workday stock earns the No. 5 rank among its peers in the Computer Software-Enterprise industry group. Digital Turbine and Concentrix Corp are also among the group's highest-rated stocks.
Looking For Winning Stocks? Try This Simple Routine
Workday stock, which is on the IBD Big Cap 20 screen, is trying to complete a consolidation with a 282.87 buy point. See if it can clear the breakout price in volume at least 40% higher than normal.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating identifies share price action with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
