Coverage of the shares of this cloud company was recently initiated by Atlantic Equities with an ‘Overweight’ rating.
Workday, Inc. (WDAY)
From Cabot Growth Investor
Workday, Inc. (WDAY) has always been a solid company, but it really hasn’t been a powerful leader since early 2014. Don’t get us wrong, the stock has done well, but there have been few persistent, market-beating advances during the past few years. But we think that’s now changing as the stock has shown excellent relative strength since late October.
Fundamentally, the firm continues to grab tons of share for its human capital management (HCM) cloud software products, and its newer Financial Management offering is booming, with subscription revenue lifting 50% in the most recent quarter.
As we’ve written before, WDAY isn’t likely to double in a month, but it’s in position to be a liquid leader of one of the strongest growth areas in the market today. As with the other two new additions, we’ll start with a half-sized position (5% of the portfolio’s total value) and look to fill it out in the days or weeks ahead. BUY A HALF.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, January 9, 2019