|Bid||0.00 x 1200|
|Ask||0.00 x 1000|
|Day's Range||165.87 - 174.10|
|52 Week Range||117.72 - 226.83|
|Beta (3Y Monthly)||0.95|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 27, 2019 - Dec 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||213.54|
There is a feeling in financial markets right now that the U.S. and global economic environments are actually improving. Look no further than Citi's Economic Surprise Index, which measures how economic data is coming in relative to expectations. For the first time since early 2019, this index has poked into positive territory.If the U.S. and global economic environments are actually improving, then the long end of the U.S. Treasury yield curve shouldn't be so low. Right now, the long end of the curve is basically screaming "recession." The data disagrees with this assessment. Almost always, the data wins out. Thus, there are murmurs out there that the long end of the yield curve should actually move higher over the next few months.While that is great news for the economy, it's bad news for growth stocks. Low rates inflated growth stocks, because as rates went lower, so did the discount rate for which investors used to discount future profits. Growth stocks get all of their value from future profits. Thus, as the discount rate on those future profits tumbled, the present value of those future profits soared, and so did growth stocks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe opposite could happen, too. Rates could rise, and if and when they do, growth stocks could drop. * 7 Tech Stocks You Should Avoid Now Of course, this blanket assessment doesn't apply to all growth stocks. For many of them, this unwinding of the growth trade that was inflated by low rates will just be a blip on the radar. Once rates stop moving higher, these stocks will stop moving lower, and they will continue on their secular up-trends.But, for some growth stocks, this unwinding could be more serious. Which growth stocks could get hit hardest in this unwinding period? Let's take a look at five growth stocks to sell as rates creep higher. Growth Stocks to Sell as Rates Move Higher: Chipotle Mexican Grill (CMG)Source: Northfoto / Shutterstock.com YTD Gain: 88%One growth stock which looks like it could get hit particularly hard if/when rates move higher as the U.S. economic outlook improves is Chipotle Mexican Grill (NYSE:CMG).Shares of the fast-casual Mexican eatery are up more than 88% year-to-date, mostly because the company has successfully and impressively executed on its turnaround initiatives, including building-out the digital delivery business, expanding the menu, and re-branding the chain as a "healthy ingredients" restaurant. Comparable sales have turned into sharply positive territory. Margins are have run higher. Profits have soared. So has CMG stock.But part of this rally has unequivocally found support in low rates. How else do you explain a restaurant sock trading at over 45-times forward earnings? The average forward earnings multiple in the restaurant sector is 28, less than half of Chipotle's forward multiple.As such, if/when rates creep higher over the next few months, CMG stock could get hit particularly hard -- not because the fundamentals here aren't good, but because the valuation looks almost entirely dependent on rates remaining low. Workday (WDAY)Source: Sundry Photography / Shutterstock.com YTD Gain: 9%One growth stock which has already been hit hard in the unwinding of the growth trade in anticipation of higher rates is Workday (NASDAQ:WDAY).Workday is a market-leading provider of cloud-hosted enterprise resource planning solutions. The cloud growth narrative has been on fire this year. So has Workday's growth narrative. In 2019, Workday's revenues, profits, and stock have all marched higher. But, as I've pointed out before, WDAY stock has marched into aggressively overvalued territory, and investors are finally starting to notice as the company's numbers have shown signs of weakness.Over the past two months, WDAY stock has shed more than 20%, mostly thanks to slowing growth trends in the company's most recent earnings report. During those two months, the 10-Year Treasury yield actually dropped from over 2% to about 1.6%. Thus, even with the long end of the curve dropping, WDAY stock has still dropped big over the past two months because the growth narrative here is losing momentum. * 10 Battered Tech Stocks to Buy Now If the long end of the yield curve reverses course here and starts to move higher, that will add more pressure to what is an already pressured WDAY stock. That added pressure should result in material weakness in Workday stock for the foreseeable future. Match Group (MTCH)Source: Shutterstock YTD Gain: 80%Another growth stock that seems aggressively overvalued and which could get hit hard in the event that rates do move higher is Match (NASDAQ:MTCH).MTCH stock is up 80% year-to-date -- and up 400% over the past three years -- as the company has emerged as the unchallenged leader in the secular growth online dating space. Specifically, two things have happened here. One, Match has acquired all of its competition (ex: Bumble) and now holds a portfolio of apps which cumulatively dominate the entire online dating landscape. Think Facebook (NASDAQ:FB) of online dating. Two, online dating has turned into a super valuable industry, as consumers have expressed ample willingness to pay up for premium and exclusive online dating services and perks.Consequently, Match's user base, revenues, and profits have all expanded dramatically over the past few years. This big growth has fueled big gains in MTCH stock. But, this is now a stock which trades at 37-times forward earnings, on revenue and profit growth that was under 20% last quarter. That's a really big multiple for not-that-big of growth. Excluding legal fees, Facebook is growing revenues at a faster rate and profits at a comparable rate. And FB stock trades at just 19.5-times forward earnings.From this perspective, it does appear that low rates are inflating the valuation underneath MTCH stock. If/when rates do move higher from today's all time low levels, then MTCH stock could suffer from material multiple compression. Roku (ROKU)Source: Michael Vi / Shutterstock.com YTD Gain: 388%It's tough for me to put streaming device maker Roku (NASDAQ:ROKU) on any "stocks to sell" list. The long-term growth narrative is just so good. But, ROKU stock has come so far, so fast, that I do think this stock could get hit hard if/when rates creep higher.Big picture, ROKU stock is a long-term winner. The company is transforming into the cable box of the streaming TV world, and in so doing, will one day have over 100 million active accounts, from which the company will be able to extract tons of high-margin dollars through TV ad sales and subscription sharing agreements. This company is in the first few innings of a very big long term growth narrative -- and that narrative will ultimately end with ROKU stock being way higher in the long run.In the near-term, ROKU stock is ahead of itself. See the math here. It's tough to justify a price tag above $150 today for this stock, even under aggressive long-term growth assumptions. The only justification for a price tag above $150? Low rates support it. But, if that low rate support disappears, you could see a big sell-off in ROKU stock. * 7 Discount Retail Stocks to Buy for a Recession As such, while I love the growth narrative underlying ROKU stock, I'm also worried that the stock could give back gains in a hurry if/when rates move higher. Starbucks (SBUX)Source: monticello / Shutterstock.com YTD Gain: 41%Joining Chipotle as the only other non-tech growth stock on this list, coffee retail giant Starbucks (NASDAQ:SBUX) seems susceptible to a sizable pullback in the event rates move higher.The logic here is simple. Starbucks is firing on all cylinders today -- positive comps, upward moving margins, double-digit profit growth, etc. That's why SBUX stock has rallied 41% year-to-date to fresh all-time highs.Starbucks is also growing at a slower pace than it has over the past several years. Sure, profits are expected to grow at a 10%-plus pace for the foreseeable future. But since 2014, EPS growth has been largely north of 15%, and often north of 20%.During that 15%-plus profit growth stretch, SBUX stock averaged a 25-times forward earnings multiple. Today, during a slower growth era, SBUX stock is trading at 29-times forward earnings. A bigger multiple for slower growth? That doesn't make sense … unless you consider that today's valuation is inflated by low rates.That's exactly what is happening. SBUX stock is trading at a bigger-than-normal multiple today for slower-than-normal growth because low rates support a bigger multiple. That low rate support could disappear over the next few months. If it does, SBUX stock could be due for some serious pain.As of this writing, Luke Lango was long FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 5 Growth Stocks to Sell as Rates Move Higher appeared first on InvestorPlace.
Workday, Inc. (NASDAQ: WDAY), a leader in enterprise cloud applications for finance and human resources, today announced that Adaptive Insights, a Workday company, has been positioned by Gartner, Inc. in the Leaders quadrant of the 2019 Magic Quadrant for Cloud Financial Planning and Analysis Solutions1 for its Adaptive Insights Business Planning Cloud. This is the third year in a row that Adaptive Insights has been acknowledged as a Leader. To achieve this, more than 4,350 organisations have selected Adaptive Insights for a continuous, comprehensive, and collaborative approach to business planning, empowering them to make more informed decisions in less time.
CEO of Workday Inc (30-Year Financial, Insider Trades) Aneel Bhusri (insider trades) sold 300,000 shares of WDAY on 09/03/2019 at an average price of $175.27 a share. Continue reading...
PALO ALTO, Calif., Sept. 4, 2019 /PRNewswire/ -- Adaptive Insights, a Workday company (WDAY), today announced it was again named to the Constellation ShortList for Cloud-Based Planning Platforms in Q3 2019. The technology vendors and service providers included in the Constellation ShortList offer the key requirements for early adopters pursuing digital transformation initiatives. Adaptive Insights has been named to the Constellation Research ShortLists for business planning since inception.
PLEASANTON, Calif., Sept. 04, 2019 -- Workday, Inc. (NASDAQ: WDAY), a leader in enterprise cloud applications for finance and human resources, today announced that it will host.
Shares of Workday (NASDAQ:WDAY) fell about 6% in late August after the hyper-growth cloud enterprise resource planning company reported second-quarter numbers which topped expectations. Management also hiked the full-year 2020 revenue guide. In other words, Workday reported a double-beat and-raise second-quarter earnings report, and in response, WDAY stock fell.Source: Sundry Photography / Shutterstock.com A stock failing to rally on a double-beat-and-raise report should raise red flags. It is almost always a sign of overvaluation.Is that what we have with Workday stock? I think so. Workday is a great company doing great things. The financials look really good, the narrative is robust, and the long-term potential is promising. But, Workday stock is priced for all that good stuff -- and then some.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndeed, my numbers indicate that a fundamentally supported fiscal 2020 price target for WDAY stock is somewhere around $140. WDAY stock trades hands north of $170 today -- and we are only halfway through fiscal 2020.Thus, Workday stock seems overextended here. To be sure, overextended stocks can stay in rally mode so long as investors keep buying. But, investors aren't buying anymore. WDAY stock is down 20% over the past two months.I think this is the beginning of a bigger downturn in WDAY stock. As such, I'd avoid buying the dip here for the foreseeable future. Workday Has Solid FundamentalsFirst, I want it to be understood broadly that Workday is a good company doing really innovative things and gaining share rapidly in a big market. There is nothing fundamentally wrong with Workday.Enterprises everywhere are migrating to the cloud. As they do, they are adopting cloud ERP solutions to digitize, automate and optimize finance, HR and corporate planning processes. SAP (NYSE:SAP) and Oracle (NYSE:ORCL) have traditionally dominated the ERP market. But as the market has pivoted to the cloud, Workday has stepped in as a third legitimate player. A few years ago, hardly anyone used Workday. Today, 50% of Fortune 50 companies and 40% of Fortune 500 companies use Workday for their cloud ERP. * 7 Best Tech Stocks to Buy Right Now There's still plenty of room for growth here. Only one-fifth of enterprise workloads have migrated to the cloud so far. Further, while 40% of Fortune 500 companies use Workday, only 17% of global 2000 companies do so, too. Thus, Workday has a tremendous opportunity over the next few years to: 1) grow wallet share among big enterprises, and 2) increase adoption among smaller enterprises on a global scale.Consequently, revenue growth will remain big for the foreseeable future. Most of that revenue growth will come through the high-margin subscription revenue pipeline, so it will be additive to gross profits. At the same time, big revenue growth should drive consistent positive operating leverage, so operating margins and profits should both move higher with revenues.Net net, Workday projects to be a big revenue and profit grower for a lot longer. Workday Stock Is OvervaluedSound like a great growth narrative? It is.But, WDAY stock is already priced for all this. Revenue growth is slowing from 30%-plus rates, to 20%-plus rates. The margin expansion trajectory is flattening out because Workday is having to spend big to compete at scale. Gross margins in the subscription business are also showing signs of being maxed out. Thus, while profit growth will remain robust, it won't be as robust as it has been.Realistically, I think this a 20% revenue growth company with healthy, but not huge, margin upside drivers. That combination leads me to believe that $6 in earnings per share is an optimistic but doable target by 2025.That would represent more than 250% growth from 2020's projected EPS. But, that's just not enough growth. If you apply an application software average 34-times forward earnings multiple to that 2025 EPS target of $6, you arrive at a 2024 price target for WDAY stock of over $200. Discounted back by 10% per year, that equates to a 2020 price target of under $140.Workday stock trades north of $170 today. We aren't even halfway through fiscal 2020. Thus, WDAY stock seems aggressively overvalued today. The Party Appears to Be OverTo be sure, aggressively overvalued stocks can stay aggressively overvalued for a long time, so long as investors keep buying into the stock and the party stays alive.Unfortunately, the party in WDAY stock appears to be winding down.Markets have been choppy over the past few months. But not too choppy. Since mid-July, the S&P 500 is down about 3.5%. Cloud stocks are down about the same, with the First Trust Cloud Computing ETF (NASDAQ:SKYY) down about 5%.WDAY stock is down more than 20% over that same stretch. That is a noticeable underperformance of both the market and Workday's peers over the past few weeks.This underperformance leads me to believe that the party is over, meaning that this stock may not find support until its fundamentals give it support -- which doesn't happen until $140. Bottom Line on WDAY StockI'd stay away from Workday stock for the foreseeable future. The party appears to be over, and now the market is left with an aggressively overvalued cloud stock that investors don't want to touch. That dynamic should ultimately result in WDAY stock falling back below $150 over the next few weeks to months.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Beware of Valuation Risks on Workday Stock appeared first on InvestorPlace.
U.S. stock futures are trading lower this morning, continuing the weakness saw on Friday. Overhead resistance near $2,940 in the S&P 500 has rejected every rally since July's breakdown and last week proved no different. Until buyers can muster the strength to vault back above it, the technical picture will remain bearish.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are down 0.76%, and S&P 500 futures are lower by 0.62%. Nasdaq-100 futures have lost 0.60%.In the options pits, Friday's slide propelled put volume ahead of calls on the session, while overall volume settled near average levels. Approximately 16.1 million calls and 16.5 million puts changed hands.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe pop in put demand spilled over to the CBOE, where the single-session equity put/call volume ratio jumped to 0.68 -- a one-week high. Meanwhile, the 10-day moving average slipped to 0.67.Options traders zeroed in on earnings reports Friday. Ulta Beauty (NASDAQ:ULTA) shares plunged 30% after the company slashed forward guidance. Workday (NASDAQ:WDAY) slipped below support despite beating earnings estimates. Finally, Shopify (NYSE:SHOP) saw its third down day in a row, offering an attractive buy-the-dip opportunity.Let's take a closer look: Ulta Beauty (ULTA)Ulta Beauty rose from obscurity over the past decade to become one of the biggest gainers of the bull market. But Friday's 30% plunge revealed all is not well with the American chain of beauty stores. As with many high-flying momentum stocks that fail to live up to lofty expectations, ULTA stock was beaten mercilessly after reporting worse-than-expected second-quarter earnings and lowering full-year guidance.Ulta's earnings-per-share grew to $2.76 on $1.67 billion in revenue. While both metrics marked modest growth, the uptick wasn't good enough. Analyst estimates were looking for $2.80 in EPS on $1.75 billion in sales. Citing "headwinds" in the cosmetics market, the company lowered its full-year EPS forecast by almost a buck, from $12.83-$13.03 to $11.86-$12.06. * The 10 Reasons to Buy Alibaba Stock Time will tell if Friday's 30% haircut was sufficient to price in the earnings downshift. The next major support zones to watch are $220, then $200.Options trading exploded with calls outpacing puts on the day. Total activity rocketed to 17x the average daily volume, with 128,030 contracts traded. Calls accounted for 59% of the take.Premiums were pricing in a gap of just under 7%, so the 30% slashing was a monster move. Traders harnessing long volatility plays like straddles or strangles came out massive winners for the event. Workday (WDAY)The trend of selling earnings results continued with Workday ahead of the weekend. The provider of human resources software slipped 5.5% despite reporting better-than-expected numbers.For the quarter, Workday posted earnings of 44 cents per share on revenue of $887.75 million. Both measures bested estimates, but investors wanted even more. With Friday's beatdown, WDAY stock has now fallen 22% off its highs. It now rests below all major moving averages with the 50-day and 20-day both trending lower. Volume patterns aren't helping the bull case either, with multiple distribution days cropping up over the past six weeks.On the options trading front, calls slightly edged out puts in popularity. Activity swelled to 629% of the average daily volume, with 80,254 total contracts traded; 52% of the total came from calls.With the uncertainty of earnings in the rearview mirror, implied volatility plunged to 36% or the 25th percentile of its one-year range. Premiums are now baking in daily moves of $3.97 or 2.2%. Shopify (SHOP)Shopify shares suffered their third straight down day ahead of the weekend amid well-deserved profit-taking. Chart watchers shouldn't be concerned one bit over the bout of selling. It was perfectly benign and was likely due to garden variety register ringing after a substantial $100 rise in SHOP stock.After rallying almost $14 off the lows, SHOP only ended the day down 1.6%. Volume was slightly above average, but nothing high enough to scare the children. All-in-all, I'm taking Shopify's appearance atop the most-active options leaderboard as an excuse to highlight its beautiful uptrend and rock star 2019 performance. The shares are up 178% year-to-date. * 7 Best Tech Stocks to Buy Right Now The cloud-based commerce company saw a sharp uptick in options trading. Total activity swelled to 213% of the average daily volume, with 80,270 contracts traded; 52% of the trading came from call options.Implied volatility ticked up to 29%, landing it at the 26th percentile of its one-year range. Premiums are baking in daily moves of $11.89 or 3.1%. Bull call spreads are my strategy of choice here.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Tuesday's Vital Data: Ulta, Workday and Shopify appeared first on InvestorPlace.
Workday stock is slumping despite posting a robust set of quarterly numbers. The stock is down about 6.1% so far today, in line with its peers.
This most-searched list is a feature included in Benzinga Pro's Newsfeed tool. It highlights stocks frequently searched by Benzinga Pro users on the platform. Ulta Beauty Inc (NASDAQ: ULTA ) shares were ...
Marvell brushed off a light quarterly outlook, while Workday slumped in spite of raising its guidance. Valuations are a factor, but so are long-term expectations.
Despite beating on earnings and revenue, and raising guidance, Workday stock is falling on Friday. Here are the key levels to know in WDAY stock now.
Workday (WDAY) delivered earnings and revenue surprises of 25.71% and 1.73%, respectively, for the quarter ended July 2019. Do the numbers hold clues to what lies ahead for the stock?
Workday earnings and sales for the second quarter handily beat estimates as the company raised its outlook for subscription revenue. The news sent shares up in extended trading Thursday.
Workday Inc reported better-than-expected quarterly revenue on Thursday, as more customers signed up for its cloud-based financial and human resources software, and the company raised its subscription revenue forecast for 2020. Workday has been trying to become a one-stop solution for back-office services in a fiercely competitive market and has been benefiting as more enterprises turn to cloud-based applications to manage their payroll and human resources. When asked about whether Workday was seeing an impact to business from Brexit, or ongoing trade tensions between the United States and China, Chief Executive Officer Aneel Bhusri told analysts on a conference call that the company had not yet seen a slowdown in business.
Workday Inc. shares rose in the extended session Thursday after the cloud-software company's results topped Wall Street estimates. Workday shares rose 1% after hours, following a 1.3% gain in the regular session to close at $187.65. The company reported a second-quarter loss of $120.7 million, or 53 cents a share, compared with a loss of $86.2 million, or 40 cents a share, in the year-ago period. Adjusted earnings were 44 cents a share. Revenue rose to $887.8 million from $671.7 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 35 cents a share on revenue of $747.5 million. Workday expects subscription revenue of $783 million to $785 million for the third quarter, and $3.06 billion to $3.07 billion for the year. Analysts estimate subscription revenue of $783 million for the third quarter, and $3.06 billion for the year.
Workday has been trying to become a one-stop solution for back-office services in a fiercely competitive market and has been benefiting as more enterprises turn to cloud-based applications to manage their payroll and human resources. When asked about whether Workday was seeing an impact to business from Brexit, or ongoing trade tensions between the United States and China, Chief Executive Officer Aneel Bhusri told analysts on a conference call that the company had not yet seen a slowdown in business. During the quarter, the company said it added The Gap, Stanley Black & Decker and Rockwell Automation in North America, among others, as new human capital management customers.