154.00 +1.71 (1.12%)
After hours: 7:58PM EDT
|Bid||153.75 x 900|
|Ask||153.74 x 1000|
|Day's Range||151.96 - 157.17|
|52 Week Range||117.72 - 226.83|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 27, 2019 - Dec 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||212.64|
The company is well-positioned for further gains, reflecting accelerating revenue growth in the industry.
Shares of Workday Inc. are up 2.5% in premarket trading Tuesday after Evercore ISI analyst Kirk Materne upgraded the stock to outperform from in line. He has a $215 target price on the stock. "We may be a bit early on this call but believe that the long-term risk/reward at current levels is attractive for one of the best [software-as-a-service] franchises in the software universe," he wrote. In particular, he said that expectations for Workday's financials product are now at a more reasonable level that reflects the time it will take for businesses to migrate to cloud-based financial systems. "In our view, we believe that adding planning and analytics to the broader financial offering will prove to be key over the long-term, and the opportunity in this market is still significant," Materne said. Workday got an upgrade from Goldman Sachs as well earlier in October, but the stock took a tumble after Workday's analyst day last week, when management highlighted a slowdown in the company's human-capital management product. The stock is off 12% over the past month, as the S&P 500 has risen 0.5%. Materne also turned bullish on Anaplan Inc. shares Tuesday while moving to the sidelines on SolarWinds Corp. and Intuit Inc. .
One of the world’s largest investment bankers, Goldman Sachs has long been a headline-maker. The bank is the largest dealer in US Treasury securities, making it a major player in the American investment market. Goldman Sachs even featured in the Great Recession of 2008 – but in a good way. The bank paid back its Federal bailout money (received under the Troubled Asset Relief Program) in full by June of 2009 – just 8 months after taking the loan.Goldman’s reputation puts its analysts and bankers in high demand, and they have moved seamlessly between the financial and political worlds. Goldman employees have worked as financial advisors in the Treasury Department (current Treasury Secretary Steve Mnuchin is a Goldman Sachs alumn), in the EU (European Central Bank President Mario Draghi came from Goldman Sachs), and in England (in the person of Mark Carney, Governor of the Bank of England). So, when a Goldman analyst speaks, investors will listen.In the last few days, Goldman analysts have been speaking. Let’s give a listen to what they’ve been saying, and see how their stock picks measure up in TipRanks’ Stock Screener.Allegheny Technologies (ATI)The first stock on our list of Goldman picks holds a unique niche regarding modern technology and industry. Allegheny Technologies is a manufacturer of metal alloys, specialty metals, and complex metal components. The company’s top market is the aerospace and defense industry, but Allegheny is present in the oil & gas sector, the automotive sector, and the electrical industry.Specifically, ATI is a market leader in the production of nickel- and titanium-based alloys and superalloys, as well as various grades of stainless steel. The company is capable of unique forgings and precision machining in the manufacture of specialty metal parts. In short, Allegheny is indispensable in the most modern industry.An essential niche is a good place to be, especially for an industrial company. Allegheny, based in western Pennsylvania, is seeing benefits from that. Goldman Sachs analyst Matthew Korn recently upgraded his firm’s rating on the stock, from Neutral to Buy. His price target on the stock, $25, indicates confidence in a 24% upside potential. (To watch Korn's track record, click here)A stock upgrade is always a good thing. ATI got a quick jump in the markets after Korn said that, despite softness due to the Boeing 737 MAX grounding, the company’s fundamental market remains intact. Over 50% of ATI’s business is with the commercial aircraft industry, and Korn points out that globally, commercial demand for jet engines – and the specialty metals required in their manufacture – remains high.Getting to the bottom line, Korn says, “ATI is one of few stocks in our coverage with top-line growth that does not depend on a commodity price recovery. With solid upside potential and attractive valuation, we upgrade our rating to Buy.”When looking at Wall Street’s stance, Korn is not the only bull, as TipRanks analytics showcase ATI as a Buy. Out of 6 analysts polled in the last 3 months, 4 rate the stock a "buy", one says "hold," while another one suggests "sell." The 12-month average price target stands at $25.83 marking about 25% upside from where the stock is currently trading. (See Allegheny stock analysis on TipRanks)Netflix (NFLX)Well all know Netflix. The streaming company is currently the leader in the online video-on-demand market, but how it will fare in the near future may be uncertain. Both Apple and Disney are launching streaming services, scheduled to go online next month, and each company brings unique challenges to Netflix. Apple will bank on its installed base of 900 million iPhone users while trying to undercut Netflix in price. Disney will open its famed Vault, a library of hundreds of films ranging from classics like Fantasia and Bambi to the modern Pixar films. Disney also owns the Star Wars and Marvel movie franchises.Netflix won’t go down quietly, and has over $18 billion in annual revenues to use in meeting the challenge. The company currently spends the bulk of that – more than $15 billion – on content creation, and has come up with some true winners: Stranger Things and Bird Box come to mind. Netflix also spends nearly $2 billion annually on marketing.With all of that in the background, the company’s volatile stock performance this year makes sense. It had gained 44% by May, dropped since and is now only up 3% year-to-date. The problem is not on the content side, or in low revenues. Rather, NFLX share prices fell when the company reported, in July, its first drop in the US subscriber base since 2011. Netflix is the established giant in this niche; maintaining its position against the coming challengers will require the company to maintain and increase its subscriber base. Investors are generally bullish on the company, but that is tinged with caution.Heath Terry, one of Goldman Sachs’ 5-star analysts, remains sanguine of the company’s future, writing, “We expect Netflix to report 3Q results roughly in-line with the company’s previous guidance of 7.0mn net subscriber additions.” (To watch Terry's track record, click here)Regarding the coming entry of top-tier competitors, Terry says, “We see the net competitive impact given the long history of competition as less signiﬁcant than programming declines in traditional television, where viewers still spend over 80% of their consumption time.”Terry rates NFLX stock a Buy with $360 price target, which implies about 25% upside from current levels. This is slightly lower than the 33% upside indicated by the $382 average price target, but still impressive. The shares are selling for $296.90, and are up nearly 4% ahead of today's earnings report.The stock’s Strong Buy analyst consensus rating comes from a whopping 25 buys given in the last three months, along with 5 holds and 1 sell. (See Netflix stock analysis on TipRanks)Workday (WDAY)This interesting tech company brings the cloud to human capital and financial management software. The company hosts its own software servers; customer buy subscriptions and access, and revenue per customer will accrue over the contract lifetime. It’s an interesting business model, that puts expenses up front while stretching the profits out indefinitely. Workday leverages the model successfully, and in 2016 recorded over $1 billion in revenue. For the fiscal year ending in January 2018, that number was up to $2.14 billion.Strong revenues and a firm market position underlie Workday’s $36 billion market cap. The company’s stock has been slipping since mid-summer, however, and is down 34% from its July peak.For 5-star Goldman analyst Heather Bellini, this actually makes WDAY a more attractive buy. She notes, “…the company's enterprise-value-to-sales multiple has fallen by more than 20% since its peak in July, compared to 14% for mid-growth software peers and 2% for high-growth software peers…” making it a more attractive entry point.She adds, “While Workday has had success in cross-selling its Financials business to existing human-capital management (HCM) customers, reaching 25% penetration of its core HCM base, our industry conversations indicate that over the past year, Workday has had success landing new customers with Financials and is steadily building a list of referenceable large enterprise customers, while expanding the company's international market presence.”Bellini also points to management’s optimism. She quotes company co-founder and CEO Aneel Bhusri: “This year, the company focused on product enhancements and the continued incorporation of new technologies such as AI/ML and blockchain to augment and automate processes, ranging from recruiting to accounting.”Bellini’s bullish outlook led her to maintain a "buy" rating on WDAY stock with a $223 price target. Her price target suggests an upside potential of nearly 40% to WDAY. Bellini is impressed by the company’s obvious strength, business model, and clear-headed management, and sees the recent dip as a chance to enter a prime stock at a discount.Workday holds a Moderate Buy from the analyst consensus, as some market watchers are cautious considering the stock’s recent slip. Still, WDAY has 12 "buys" given in the past 3 months. The average price target of $216 implies an upside of nearly 37% from the $158.39 trading price. (See Workday stock analysis on TipRanks)
During Wednesday's Mad Money program Jim Cramer noted that a number stocks recently had strong gains which came at the expense of the high-growth cloud stocks, with names such as Workday Inc. plunging 20% in recent days as investors re-evaluated these once hot stocks. Let's check out the charts of WDAY to see if there is more pain ahead for investors. In the daily Japanese candlestick chart of WDAY, below, we can see that prices made a peak in early July and then turned lower.
On Wednesday's PreMarket Prep show, earnings reports and ratings changes took a backseat to the negative news for cloud stocks and the positive news for opioid-associated drug distributors. Stormy Outlook ...
The indices did not move too much on Wednesday, but a handful of tech stocks were hit hard on the day. Let's look at a few of the top stock trades going into the latter half of the week. Top Stock Trades for Tomorrow No. 1: Adobe (ADBE)Adobe Systems (NASDAQ:ADBE) came under pressure Wednesday following a downgrade from Citi analysts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsShares have been trying to break out over downtrend resistance (blue line) and were actually succeeding before Wednesday. However, the tepid bullish action was not enough to withstand today's selling.Nor were the 20-day and 200-day moving averages, as ADBE stock gapped below both metrics. However, it's finding some reprieve from the 38.2% retracement. Now investors want to know, can ADBE reclaim the 200-day and downtrend resistance or are lower prices in store?If it's the latter, look for a decline down into the $258 to $260 area. There it will find a notable level of support as well as the 50% retracement. If that fails to hold, ADBE stock may be in trouble. On the upside, the charts are pretty cluttered until Adobe can clear the 50-day moving average. Top Stock Trades for Tomorrow No. 2: Netflix (NFLX)Netflix (NASDAQ:NFLX) is very much a mixed picture ahead of the company's earnings report on Wednesday after the close.On the plus side, shares have broken out over downtrend resistance (blue line) and are maintaining above the 20-day moving average. On the downside, they are stuck below the 50-day moving average and the 38.2% retracement.So what now?Should shares decline, look to see if the 23.6% retracement at $267.75 can support the name. If not, $260 could be on deck, with the September low of $252.28 below that. Below the September low and the December low is possible.On the upside, see that NFLX reclaims and holds the 50-day moving average and 38.2% retracement. Above that opens the door to the 50% and 61.8% retracements at $308.61 and $326.81, respectively. Top Stock Trades for Tomorrow No. 3: Abbott Labs (ABT)Abbott Labs (NYSE:ABT) was mixed on Wednesday after it reported earnings. However, with clear-cut support nearby and breakout potential, it's worth watching.Look at the past year of action. Shares have a consolidation period, then tend to break out to new highs and consolidate again. The old highs also tend to become support.Luckily, the prior highs near $79 to $80 also intersect with the 200-day moving average and 61.8% retracement. That makes it a pretty solid risk/reward area for investors. Below $79 and traders may consider stopping out.On the upside, see if ABT stock can break out over downtrend resistance and the 50-day moving average. Over it and a move back to $86-plus could be in the cards. Top Stock Trades for Tomorrow No. 4: ServiceNow (NOW)ServiceNow (NYSE:NOW) was hammered on Wednesday and it leaves the stock clinging to support. Shares are just above the 200-day moving average and range support near $250.Below $250 and the October low of $243.54 is on the table. Below that and the stock could struggle a bit.If support holds, look for NOW to reclaim the 50-day moving average and rally back up to range resistance near $275. Over $275 and perhaps ServiceNow could retest the backside of its prior uptrend (blue line). Top Stock Trades for Tomorrow No. 5: Workday (WDAY)Thought ServiceNow investors were having a bad day? Just look at Workday (NASDAQ:WDAY), which was hit even harder on the day.The 61.8% retracement held WDAY in check on Tuesday, and on Wednesday the 38.2% retracement is acting as bulls' saving grace. Below the 38.2% and Wednesday's low, and the $145 mark could be on the table.If current support at the 38.2% retracement holds, look for WDAY to reclaim the $165 to $166 area. Above that and it will also have to reclaim downtrend resistance.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post 5 Top Stock Trades for Thursday: ADBE, NFLX, ABT appeared first on InvestorPlace.
Workday Inc. shares were getting crushed Wednesday and dragging on the cloud software space Wednesday after several analysts cut price targets on the stock after the human capital management software company’s analyst day.
To many investors, the idea that Splunk (NASDAQ:SPLK) stock is cheap seems ludicrous. Splunk's guidance calls for negative operating cash flow this year. And Splunk stock trades at roughly eight times its sales (excluding its net cash) and 50 times analysts' average 2020 earnings per share estimate.Source: Michael Vi / Shutterstock.com Splunk stock hardly seems like a value play. But it does look at least inexpensive compared with its peers. Its price-sales ratio is one of the lowest of any company whose revenues are growing at a 30%+ clip.In recent quarters, Workday (NASDAQ:WDAY) and Paycom Software (NYSE:PAYC) posted similar revenue increases as SPLK. WDAY trades at over 11 times its revenue, and PAYC's price-sales ratio is 17. Other software companies are growing at rates similar to SPLK and have higher valuations.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut why is SPLK stock trading at a discount to some of its peers and why has that situation persisted? SPLK stock has gained roughly 20% over the past year, but that figure is skewed by timing. Splunk stock actually sits below where it was after its fiscal Q2 results which were released back in August 2018.There are interesting arguments for why the relatively low valuation of Splunk stock has created a buying opportunity. There are also interesting arguments as to why SPLK stock deserves the discount. Overall, I'd lean towards the bullish argument. But investors who are considering buying Splunk stock need to consider multiple points. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) The Case for Splunk StockSplunk stock is not necessarily cheap. Its valuation is still higher than that of the average stock, and for good reason.Splunk's log-management offerings are a direct play on Big Data. And the company's growth has been impressive. Its revenue increased 41% in fiscal 2017 and jumped 38%+ in the following two years. Its sales are expected to increase roughly 28% in FY20.Meanwhile, as noted earlier, SPLK stock has stalled out, trading sideways for the last 13+ months. That performance, combined with the company's revenue and profit growth, has caused the multiples of Splunk stock to fall. And bulls would argue that some of the relative weakness has come from a misunderstanding surrounding the company's cash flow guidance.After all, Splunk stock fell after its Q2 results partly because of its cash flow guidance. Splunk's guidance went from $250 million to -$300 million, a seemingly huge change. But bulls would argue that the shift was caused by the company's transition to a subscription model. That transition creates uneven sales growth, meaning the guidance change indicates little, if any, alteration of Splunk's long-term cash flow.That guidance overshadowed a strong report, as SPLK's software revenue jumped 46% year-over-year. The bull case is that the company's growth outlook remains intact, while short-term concerns have moved SPLK stock to a lower and more attractive valuation.Wall Street analysts seem to agree; their average price target on SPLK stock is about 25% above its current price. Last month, Raymond James said the company's new pricing model could boost Splunk stock in the near-term. The Case Against SPLK StockThe bull case on SPLK is intriguing, and I wouldn't be surprised to see SPLK stock break out at some point. But the shares pose some risks as well.For one, SPLK might well be cheap on a relative basis, but that doesn't guarantee that the shares will rise. Eight times revenue, even with Splunk's attractive gross margins, still prices in quite a bit of growth. Moreover, Splunk stock lost about a third of its value during last year's Q4 stock-market selloff. If the stock market tumbles again, SPLK stock will fall further.The other considerable risk is on the competitive front. Splunk is the leader in log management, but it has some tough competitors. Elastic (NYSE:ESTC), for example, offers an open-source ELK Stack which allows customers to build their own log management systems, as opposed to buying them from Splunk.Datadog (NASDAQ:DDOG), which recently launched its IPO, is another competitor. Datadog offers a unified platform that includes log management, but also infrastructure, cloud, and application-performance monitoring. DDOG is trading at roughly 20 times its revenue, suggesting that investors are bullish on its outlook.Both Datadog and Elastic have posted stronger revenue growth than Splunk of late, although both are doing so from lower revenue bases than SPLK. Hope for a Better Entry Point?For software-as-a-service (SaaS) investors, then, SPLK probably is at the top of the list. Its valuation might be questionable, but it is quite attractive relative to what investors have been willing to pay for growth stocks in recent years.But I'm not sure Splunk stock quite gets to the point of being compelling for those investors who aren't focused on growth stocks.SPLK is facing risks. The shares probably can grow into their forward price-earnings multiple of 40+. But it only takes one earnings miss for competitive risks to move to the forefront of investors' minds.Given the performance of Splunk stock over the past 12+ months, it does seem worth staying on the sidelines and hoping for a better entry point. SPLK probably is cheap, but it's a little too cheap. And there are reasons why it could get even cheaper.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) * 7 Hot & Trendy Generation Z Stocks to Buy * 5 Stocks to Buy in the Mighty Middle The post Splunk Stock Actually Is Cheap, But Why Is That? appeared first on InvestorPlace.
Workday Inc (NASDAQ: WDAY) shares dropped 12.8% on Wednesday after the company held its analyst day event this week. Wall Street analysts came away from the event concerned about Workday’s ability to monetize its latest products and meet consensus earnings and revenue targets in the near term. Wells Fargo analyst Philip Winslow said the event was yet another sign Workday has more work to do.
Shares of the software firm are falling sharply after Workday’s user conference and analyst meeting yesterday. The company said growth is slowing in its core human-resources management software, and also noted delays in new deals.
Workday is down sharply after indicating its core HCM software business will see slowing growth, and it's taking many enterprise software peers lower with it.
Adobe (ADBE), Workday (WDAY), and ServiceNow shares have lost significant market value in early-market trading today. Adobe stock has fallen close to 4%.
Workday Inc. shares are off more than 11% in Wednesday morning trading and pacing the declining software sector after the company held its user conference and analyst day. Several analysts flagged the company's commentary on its human-capital management product, which Workday expects to end the year with 20% growth, marking a slowdown. "Financials will need to continue to grow at healthy rates to offset this," wrote Jefferies analyst Brent Thill, though he said the attachment rate of financials to the core product is relatively low, suggesting opportunity. While Workday also announced some new products, Macquarie analyst Sarah Hindlian questioned the revenue potential for some of them. "For example, blockchain-enabled Workday Credentials allows verification of credentials such as employment and educational history," she wrote. "We think this is likely a limited market opportunity." Another issue for Workday is that its chief executive commented that the company has "definitely seen some delays" in deal activity, but Workday doesn't expect these to impact the business or result in cancellations. Other software stocks are getting hit in Wednesday trading as well, including Slack Technologies Inc. , which was the subject of a price-target cut at Morgan Stanley, and Adobe Systems Inc. , which received a Citi Research downgrade. Shares of Okta Inc. , Splunk Inc. , Zoom Video Communications Inc. , and Atlassian Corp. PLC are also down. The iShares Expanded Tech-Software ETF is off 2.3%, while the S&P 500 has lost 0.1%.
RBC nonetheless sees a `durable' growth story. Other analysts express concern about valuation and software firm's ability to monetize new products.
This is now the second time in roughly a year that actress Elizabeth Banks -- and the marketing team at State Street -- has told us to pay attention to the "middle." And yet, most of us continue to ignore her siren call about mid-cap stocks, which is a huge shame because she happens to be right. Mid-cap stocks and ETFs like the SPDR S&P MidCap 400 ETF (NYSEArca:MDY) are darn good for your portfolio.It turns out that mid-cap stocks fall right in the sweet spot for long-term growth. They aren't too big that their best days are behind them. At the same time, they are just big enough to survive economic duress and downturns. Many of the brands and services we use day-to-day are actually performed by mid-cap companies. Add in their higher rates of dividend growth and you have a recipe for long-term success.Just how much success? Mid-cap stocks, roughly defined as companies between $2 billion and $10 billion in market capitalization, have managed to produce an extra 753% cumulative return over small-caps since the 1990s. And they've done so with less overall volatility. Meanwhile, mid-caps have managed to outperform their larger rivals as well over that time period.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks Staging Huge Reversals The reality is, mid-cap stocks offer the perfect blend of growth and stability that many investors need. We should listen to Banks' advice and head towards the middle. Mid-caps really are that great for our portfolio's health. With that, here are five mid-cap stocks that could be great additions to your investments. Mighty Mid-Cap Stocks to Buy: Zebra Technologies (ZBRA)There's a good chance that you've never heard of Zebra Technologies (NASDAQ:ZBRA). But I can guarantee if you've ever been shopping at some point in your life -- either online or in-store -- your purchase has interacted with their products.Source: The DEMO Conference via FlickrZBRA makes all sorts of barcode scanners, printers, RFID labels, software, and other inventory tracking gear. All of their products are a must-have for retailers looking to ship and stock their shelves. And even more so in the world of omnichannel retailing.With consumers wanting their goods when and how they want them, inventory tracking has become even more important. For Zebra, that's meant a surge in sales. Year-over-year, ZBRA managed to see an 8.9% jump in revenues for its latest quarter. This continues a long trend of higher sales. Even better is a shift towards more high-margin software that has helped boost profits by 75% year-over-year.But e-commerce and omnichannel retail sales aren't the only way Zebra is winning. The firm's products are quickly being demanded by hospitals, food producers and other industries as regulations and safety concerns require intense tracking of goods. The addition of IoT products to its mix is also helping. With that, ZBRA has plenty of room to grow over the long haul.With plenty of cash flows, a new $1 billion buyback program and growth on the horizon, ZBRA is a wonderful mid-cap stock to buy today. Paycom (PAYC)Cloud computing, software as a service (SaaS) and other off-site applications have taken the world by storm. And while there are plenty of larger firms dominating the space, there are many mid-cap stocks winning in the cloud. Case in point: Paycom (NASDAQ:PAYC).PAYC is a perfect example of what the cloud is really good for: automating and performing boring tasks for customers. In this case, it's a variety of human resources functions. Through its suite of applications, Paycom allows HR departments to hire, develop, pay and manage benefits for employees. On the flip side, employees can use PAYC's apps to request time off, enroll in retirement plans, fill in timesheets, etc. Often these tasks can be done via smartphone.The key for PAYC, unlike rival Workday (NASDAQ:WDAY), is that the firm has moved down the ladder in terms of client size. We're talking mom-and-pop businesses to medium-sized firms with a couple hundred employees. This focus has allowed Paycom some great retention rates and growth.Last quarter, PAYC realized a big 31% jump in revenues as it continues to hook more customers and move existing ones into other products. And unlike many smaller cloud stocks, Paycom is profitable -- realizing a 37% jump in EPS year-over-year. * 10 Tech Stocks to Buy Now for 2025 With plenty of ways to add growth and additional customers, PAYC is a prime example of how mid-cap stocks can be used to fuel growth in a portfolio. National Retail Properties (NNN)Sure, many malls across the country are dying a slow death. But not all retail real estate is suffering. Just take a look at your local Taco Bell, bank branch, or Jiffy Lube. These free-standing buildings offer a huge opportunity for mid-cap stock investors -- especially when they are owned by National Retail Properties (NYSE:NNN).NNN owns a huge portfolio of these free-standing buildings and centers -- nearly 3045 to be exact. The win for NNN and its shareholders is that these properties fall under the guise of triple-net leased properties. Here, the tenant is responsible for the payment of taxes, maintenance and other fees associated with renting the property. For landlords, the removal of these extra costs results in a much bigger rent check and profit margin per property. And with its size, National Retail has been able to feast on this fact throughout its history. With its better cash flows, the firm has one of the longest streaks of dividend growth -- 29 years straight -- among all REITs. Currently, NNN yields a healthy 3.6%.The future looks bright for NNN. The vast bulk of its tenants include LA Fitness gyms, 7-Eleven, and Wendy's (NYSE:WEN) franchises. We're talking about internet-proof retail operations. This will continue to boost NNN's occupancy rates and keep the cash flowing towards investors. Bio-Rad Laboratories (BIO)During the gold rush, the people who made the most money weren't the miners themselves, but the stores that provided all the picks and shovels. Today's gold rush could be biotech and healthcare researchers. One of the best mid-cap stocks providing the "picks and shovels" happens to be Bio-Rad Laboratories (NYSE:BIO).BIO may not be as well known to investors as rivals Thermo-Fisher (NYSE:TMO) or Illumina (NASDAQ:ILMN), but its products do find their way into a variety of both public and private research labs. This includes everything from instruments costing tens of thousands of dollars to one-time use consumables and reagents. The combination of products, both advanced and basic, has continued to benefit BIO over its history. Last year, sales at the firm rose 5% as more drug and universities plowed some hefty dollars into research.And that fact doesn't show any signs of slowing. Continued life sciences spending is expected to surge over the next few years by an annual rate of 6% as scientists tackle hard to treat illnesses and diseases. * Buy These 7 Mid-Cap Stocks to Make a Profit This will only help boost BIO's strong pace of growth further. Add in recent wins on the margins front and product additions to its digital life sciences/software segments, and you're looking a great mid-cap stock to own for the long haul. Domino's Pizza (DPZ)Is it a pizza joint or the latest tech start-up full of innovation? For Domino's Pizza (NYSE:DPZ), its looking more like the latter than the former. DPZ has transformed itself over the last few years as it has taken tech spending to a whole new level. The restaurant was one of the first in the sector to offer online ordering. Since that day in 2007, DPZ hasn't looked back.These days, Domino's offers a whole suite of digital tools to make ordering its food easier. This builds on its AnyWare technology. AnyWare allows customers to order a pizza from 15 different methods, including their phone, from their car via Ford (NYSE:F) Sync, Google (NASDAQ:GOOG, NASDAQ:GOOGL) Home devices and even Slack (NASDAQ:WORK) while at the office. And it continues to add more capabilities to the platform. Moreover, it has rolled out new apps including a one-click system that purchases a customer's normal pizza order in 10 seconds.As a result, DPZ has seen sales surge with digital ordering now making up roughly two-thirds of its sales.Now rivals are starting to move into DPZ's territory with new online ordering and applications. However, DPZ continues to innovate and first-mover status still has it coming out ahead in the pizza wars.For investors seeking mid-cap stocks, Domino's could be a great "tech" play.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Staging Huge Reversals * 7 Under-The-Radar Growth Stocks That Could Benefit New Investors * 5 Excellent High-Yield Dividend Stocks to Buy The post 5 Stocks to Buy in the Mighty Middle appeared first on InvestorPlace.
Workday Inc. (WDAY), a leader in enterprise cloud applications for finance and human resources, today announced a series of new innovations to help customers better navigate the changing world of HR. At Workday Rising, the company’s annual customer conference, Workday underscored how organizations can reimagine their businesses with new applications including Workday People Experience, Workday People Analytics, Workday Credentials, and more. Workday customers, which include 40 percent of the Fortune 500 and 50 percent of Fortune 50 companies, are better equipped to plan, execute, analyze, and extend—all in one system powered by machine learning, and backed by Workday’s unwavering commitment to customer service.
At Workday Rising, the company’s annual customer conference, Workday highlighted how organizations will be able to reimagine their businesses with a new application, Workday Accounting Center, and machine learning-powered capabilities such as anomaly detection for accounting entries. Leveraging the Power of One—one source for data, one security model, one user experience, and one community—Workday is uniquely suited to deliver solutions to help enterprise customers streamline financial processes and make faster, data-driven decisions.
CrowdStrike shares are trading sharply amid a broad market rally Friday, after Goldman Sachs analyst Heather Bellini cut her rating on the endpoint security software company to Sell from Neutral. Bellini also upped her rating on Workday to Buy from Neutral.
Workday Inc. shares are up 3.3% in premarket trading Friday after Goldman Sachs analyst Heather Bellini upgraded the stock to buy from neutral. She sees a more attractive entry point now that the company's enterprise-value-to-sales multiple has fallen by more than 20% since its peak in July, compared to 14% for mid-growth software peers and 2% for high-growth software peers. Bellini also points to momentum for Workday's financials offering, which she said is becoming more competitive as more large enterprise customers conduct cloud-based financial migrations. "While Workday has had success in cross-selling its Financials business to existing human-capital management (HCM) customers, reaching 25% penetration of its core HCM base, our industry conversations indicate that over the past year, Workday has had success landing new customers with Financials and is steadily building a list of referenceable large enterprise customers, while expanding the company's international market presence," Bellini wrote. She maintained her $223 price target on the stock, which has dropped 22% over the past three months as the S&P 500 has lost about 2%.
(Bloomberg) -- SAP SE is sticking to its new plan of keeping the company youthful, and top management isn’t being spared.The storied German software giant, Europe’s biggest tech company by market value, has spent the past few years attempting to reinvent itself. It’s working to adapt its corporate software, used by almost all of the world’s 100 most valuable brands, to the web and is taking on younger rivals in cloud-based computing.There’s also been an exodus of company veterans, which as of 12:44 a.m. Friday in Walldorf, included CEO Bill McDermott.Analysts have called the late-night news a surprise; McDermott’s contract doesn’t run out until 2021. He also unveiled a major restructuring plan in April and was expected to brief investors on the company’s strategy next month.But, as he said on a conference call after the announcement, “Ten years is a long time to be CEO.”McDermott, 58, had been with the company since 2002 when he joined as head of its North American business. At the time, he was that unit’s fourth head in three years as SAP struggled to compete with rivals like Oracle Corp., and grappled with a drop in sales of software licenses. Problems with its products were blamed for delayed shipments of Whirlpool Corp.’s appliances and even Hershey’s Halloween chocolates.In the role, he recruited a new management team, changed the way the sales department targeted customers, and ultimately boosted sales growth. When CEO Leo Apotheker unexpectedly resigned in 2010, McDermott and product-development head Jim Snabe were picked to replace him as co-CEOs. Snabe -- currently chairman of Siemens AG -- stepped down and took a spot on the board in 2014, and McDermott became sole head of the company.With nearly 100,000 employees and a sprawling business that generated about $27 billion in revenue last year, driving change has sometimes been controversial. Since 2011, McDermott spent $26 billion on six major cloud acquisitions, and was the main advocate for the $8 billion acquisition of Qualtrics International Inc., the company’s largest-ever deal.Analysts criticized the purchase as too expensive. In November, Qualtrics said it expected revenue for 2018 to exceed $400 million, a figure that wouldn’t move the needle much for SAP. McDermott defended the deal, believing that combining SAP’s sales force and a trove of operational data with Qualtrics’s customer experience feedback would accelerate growth.More recently, the company attracted the interest of activists at Elliott Management Corp., which revealed its 1.2 billion-euro ($1.3 billion) stake when SAP announced a change in strategy in April. SAP had been vague at the time, saying it planned “new initiatives to accelerate operational excellence and value creation” with a focus on “tuck-in” acquisitions.SAP underwent a management shakeup in the weeks preceding the April announcement. The president of its cloud business, 27-year SAP veteran Robert Enslin, had announced his departure earlier that month. It was later revealed he’d left for Google. A day earlier, Chief Technology Officer Bjoern Goerke, another cloud expert based in the U.S., penned a blog post saying he was leaving the company he joined as a student in 1988. Board member Bernd Leukert, a seasoned IT executive, left SAP in February.Personally, McDermott also had to weather a near-fatal accident in 2015 that cost him an eye when he fell down some stairs while carrying a water glass and nearly bled to death.His replacements are a mix of old and new guard at SAP. Christian Klein, 39, spent the past 20 years at SAP, after joining as a student in 1999. Jennifer Morgan, 48, arrived in 2004 and was the first American woman on the company’s executive board. Morgan has been seen as McDermott’s protege, rising relatively quickly through the ranks, and most recently served as the president of the all-important cloud group.Together, Klein and Morgan will have to find a way to compete with younger companies like Salesforce.com Inc. and Workday Inc. while encumbered by a traditional enterprise software business.Cloud is the company’s clear growth engine, with revenue increasing about 32% last year to about 5 billion euros. Sales from its largest business, which helps clients set up and implement SAP’s software, grew less than 1% in 2019.McDermott’s resignation was announced alongside better-than-expected preliminary third-quarter earnings results. New bookings for the company’s cloud products, a key metric that indicates future sales, grew 33% on a constant-currency business. That was more than double the pace set in the second quarter, when disappointed investors sent shares down as much as 10%.“While it is a shock to see Mr. McDermott stepping down, he is clearly handing over the reins of the business from a position of strength and we are encouraged to see that his replacements are long-term members of the SAP executive team,” said Thomas Fitzgerald, fund manager at SAP shareholder Edentree Investment Management, in a note on Friday.\--With assistance from Stefan Nicola.To contact the reporters on this story: Amy Thomson in London at email@example.com;Kit Rees in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the second quarter. One of these stocks was Workday Inc (NASDAQ:WDAY). Is Workday Inc (NASDAQ:WDAY) a buy right […]