Score 8 (out of 10): WORKDAY INC-CLASS A poised to rally +12.1% rally in 3 months

87

What’s Going On Here?

WORKDAY is in the human capital cloud-based applications business. The company should benefit from the currently strong US labor market as well as help companies to streamline their HR functions. While the company posted earnings of $0.73 in the quarter a year ago, analysts are now expecting that Workday will post just $0.71 for this quarter (Feb 25 is the earnings date). The stock price has adjusted lower in recent days.

Why Now?

WORKDAY INC-CLASS A has reached a new medium term low. Previously, during similar occasions, WORKDAY INC-CLASS A shares had a median return of +12.1%, over the following 3 months based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for WORKDAY INC-CLASS A received a high score of 8 (out of 10). This insight was generated on 2022-January-4 with last price of 253.06.

What’s This Company About?

WORKDAY INC-CLASS A is in the Enterprise Software/Serv business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 30.3% more (average). Ticker symbol: WDAY US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 283.76 (+12.1%) has been reached. Based on WORKDAY INC-CLASS A’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 230.56 (last price at 253.06), which is equivalent to a -8.9% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

5.7% (May-2021), 12.6% (March-2020), 11.7% (October-2019), -12.1% (August-2019), 34.6% (October-2018), 17.2% (June-2018), 37.6% (December-2017), 4.8% (November-2016), 1.5% (January-2016), 15.7% (August-2015).

Historical Chart:

———————————————————————

Summary:

NameWORKDAY INC-CLASS A
ViewUp
Star (1 to 10)8.0
Target+12.1%
Time3 months
Hit Rate90%

Popular Insights:

Leave a Reply