After weathering a yearlong slide starting at the end of 2021 and another decline from March to August this year, Workday has crafted a new buy point as the New Year approaches. And as the enterprise software firm expands its use of artificial intelligence, fund managers show demand for Workday stock.
Note that Workday and Apollo Global Management have joined the S&P 500, replacing Qorvo and Ammentum. Trading volume in Workday and Apollo spiked on Friday ahead of their Monday debuts on the benchmark index.
A+ Funds Buy Into Workday Stock
Embedding artificial intelligence across its platform, Workday helps clients with both financial management and human resources. More than 10,500 organizations around the world use the California-based firm, including over 60% of the Fortune 500.
Workday did not join industry peers Palantir Technology, Salesforce and ServiceNow on December's list of new buys by the best mutual funds. But clear signs of demand have emerged.
Workday stock sports a B+ Accumulation/Distribution Rating along with a strong 1.7 up/down volume ratio. Plus, 56 funds with an A+ rating from IBD have a position in the stock.
In IBD Stock Checkup, Workday boasts a stellar 98 Composite Rating. The enterprise software group ranks a strong No. 15 among the 197 groups IBD tracks. Showing the strength of the group, Palantir, ServiceNow, Datadog and more earn the highest-possible 99 Composite Rating. Workday slightly tops Salesforce's 97 rating.
Workday Expands Generative AI
On Dec. 11, Workday unveiled new capabilities for Illuminate, the next generation of Workday AI.
Built on what the company calls the world's largest and cleanest HR and financial data set, Workday says the new Illuminate features in Workday Peakon Employee Voice, an AI-powered listening solution for gathering feedback.
Workday says these enhancements will help overburdened managers by analyzing large volumes of employee feedback. At the same time, enhanced AI features will deliver insights and recommendations needed to help managers make important decisions, retain top talent and build highly engaged teams.
To that end, the innovations in Workday Peakon Employee Voice include generative AI-powered content summaries, as well as on-demand comment summaries and more.
Workday Stock Resets Base Count, Crafts Handle
While forming a 43-week long cup with handle, Workday stock reset its base count, making its current pattern first-stage.
Acting as a possible refresh for a new climb, this positive signal happens when the low in a pattern undercuts the low in the prior base. A first-stage base has a greater likelihood of driving a sustained run than a late-stage pattern.
Having now done that, Workday has gone on to form a handle in its current formation. The buy point is 294.
As Workday continues to build the handle, it looks to retake its 21-day exponential moving average.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
