Workday (NASDAQ: WDAY) lowered its full-year guidance, which isn’t exactly a good thing. However, the company continues to expect solid double-digit growth and to sustain the pace next year, so the price implosion it caused is a likely opportunity to buy. This company lowered its guidance but remains the leader in its field, providing a scalable plug-and-play platform for financial and HR automation that has sustained demand and a robust outlook for growth.
The consensus forecasts are for sustained mid-teens revenue growth into the early 2030s and for the margin to widen steadily. The stock trades at a relatively high valuation today, but the market still undervalues it relative to the outlook. This stock is trading under 15x its 2030 EPS forecasts. It is a deep value for a tech company with positive cash flow, virtually no leverage, and a high probability of capital returns increasing and driving additional value gains over time.
