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Workday (WDAY, $248.39) beats fiscal Q4 earnings expectations
Workday posted fiscal fourth-quarter 2022 earnings and revenue that both increased year-over-year.
For the quarter ended January 31, 2022, the HR managing cloud-based company’s non-GAAP net income rose to 78 cents per share from 73 cents per share in the year-ago quarter, and exceeded the Zacks Consensus Estimate by 7 cents.
Revenues rose to $1,376.1 million from $1,131.7 million in fourth-quarter fiscal 2021, and surpassed the consensus estimate of $1,364 million. Subscription services revenues (89.3% of total revenues) rose +22.2% year over year to $1,229.2 million on the back of an expanding customer base. Subscription revenue backlog in the quarter increased +26.9% from the year-ago quarter to $12.81 billion. Professional services’ revenues (10.7% of total revenues) rose +17.2% to $147 million.
In fiscal 2022, Workday had a net income of 12 cents per share, vs. a net loss of -$1.19 per share in fiscal 2021. Non-GAAP net income in fiscal 2022 came in at $1,038.7 million or $3.99 per share from $724.2 million or $2.93 per share in fiscal 2021.
The company’s revenues rose +19% year over year to $5,138.8 million In fiscal 2022, on the back of growth in subscription revenues (up +20%) of $4,546.3 million –thanks to higher customer contracts and solid customer renewals (with gross retention of more than 95%).
Workday expects its fiscal 2023 subscription services revenues to range between $5,530 million to $5,550 million. It projects non-GAAP operating margin to be 18.5%.
WDAY's Indicator enters downward trend
The Aroon Indicator for WDAY entered a downward trend on May 25, 2022. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 141 similar instances where the Aroon Indicator formed such a pattern. In 100 of the 141 cases the stock moved lower. This puts the odds of a downward move at 71%.
Current price $164.51 is below $188.07 the lowest support line found by A.I. Throughout the month of 04/25/22 - 05/25/22, the price experienced a -21% Downtrend, while the week of 05/18/22 - 05/25/22 shows a +0.96% Uptrend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WDAY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where WDAY's RSI Oscillator exited the oversold zone, 14 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 58%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 16 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.87% 3-day Advance, the price is estimated to grow further. Considering data from situations where WDAY advanced for three days, in 243 of 357 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
WDAY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.55.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.200) is normal, around the industry mean (15.683). WDAY has a moderately high P/E Ratio (1428.571) as compared to the industry average of (151.151). Projected Growth (PEG Ratio) (2.162) is also within normal values, averaging (4.494). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (8.130) is also within normal values, averaging (101.531).
The Tickeron Price Growth Rating for this company is 83 (best 1 - 100 worst), indicating slightly worse than average price growth. WDAY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 69 (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
The average market capitalization across the Packaged Software Industry is 6.1B. The market cap for tickers in the group ranges from 580 to 1.9T. MSFT holds the highest valuation in this group at 1.9T. The lowest valued company is NANN at 580.
The average weekly price growth across all stocks in the Packaged Software Industry was -2.01%. For the same Industry, the average monthly price growth was -13.26%, and the average quarterly price growth was -22.38%. GTSWF experienced the highest price growth at 395.87%, while BLVDF experienced the biggest fall at -80.08%.
- 4/12/22 7:12 AM: Workday (WDAY, $227.21) was a top loser this week, declining -6.5%
- 3/5/22 8:15 AM: Workday (WDAY, $240.21) was a top weekly gainer, with a +6.65% jump
- 2/26/22 6:56 AM: Workday (WDAY, $225.23) was a top weekly gainer, with a +5.02% jump
The average weekly volume growth across all stocks in the Packaged Software Industry was 16.61%. For the same stocks of the Industry, the average monthly volume growth was 39.86% and the average quarterly volume growth was 54.3%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the 15 Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.3.
8 stocks in the group of tickers confirmed the positive outlook based on the RSI indicator with average odds of 79%.
The average market capitalization across the group is 4.6B. The market cap for tickers in the group ranges from 26.8M to 16B. AKAM holds the highest valuation in this group at 16B. The lowest valued company is BSQR at 26.8M.
The average weekly price growth across all stocks in the group was 0.35%. For the same group, the average monthly price growth was -12.6%, and the average quarterly price growth was -33.43%. AVID experienced the highest price growth at 15.02%, while ALLT experienced the biggest fall at -7.76%.
- 5/18/22 5:18 AM: Stem (STEM, $7.84) was a top weekly gainer, with a +12.97% jump
- 5/14/22 4:23 AM: Immersion (IMMR, $5.31) was a top weekly gainer, with a +16.96% jump
- 5/7/22 5:28 AM: Stem (STEM, $8.79) was a top weekly gainer, with a +22.59% jump
The average weekly volume growth across all stocks in the group was -26.66%. For the same stocks of the group, the average monthly volume growth was -13.11% and the average quarterly volume growth was 20.97%
- 4/15/22 4:33 AM: The volume for Allot stock increased for one day, resulting in a record-breaking daily growth of 396% of the 65-Day Volume Moving Average
- 3/19/22 4:44 AM: The volume for Allot stock increased for one day, resulting in a record-breaking daily growth of 609% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Adobe (NASDAQ:ADBE), Oracle Corp (NYSE:ORCL), Salesforce (NYSE:CRM), Intuit (NASDAQ:INTU), SERVICENOW (NYSE:NOW), NetEase (NASDAQ:NTES), Activision Blizzard (NASDAQ:ATVI), Palo Alto Networks (NYSE:PANW), VMware (NYSE:VMW).
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
The average market capitalization across the Packaged Software Industry is 6.1B. The market cap for tickers in the group ranges from 580 to 2T. MSFT holds the highest valuation in this group at 2T. The lowest valued company is NANN at 580.
The average weekly price growth across all stocks in the Packaged Software Industry was 0.84%. For the same Industry, the average monthly price growth was -12.47%, and the average quarterly price growth was -21.21%. GTSWF experienced the highest price growth at 400%, while BLVDF experienced the biggest fall at -80.08%.
- 5/18/22 5:18 AM: Stem (STEM, $7.84) was a top weekly gainer, with a +12.97% jump
- 5/14/22 4:23 AM: Immersion (IMMR, $5.31) was a top weekly gainer, with a +16.96% jump
- 5/7/22 5:28 AM: Stem (STEM, $8.79) was a top weekly gainer, with a +22.59% jump
The average weekly volume growth across all stocks in the Packaged Software Industry was -1.46%. For the same stocks of the Industry, the average monthly volume growth was 18.47% and the average quarterly volume growth was 88.06%
- 4/15/22 4:33 AM: The volume for Allot stock increased for one day, resulting in a record-breaking daily growth of 396% of the 65-Day Volume Moving Average
- 3/19/22 4:44 AM: The volume for Allot stock increased for one day, resulting in a record-breaking daily growth of 609% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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