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Morgan Stanley on Workday: Analytics Markets Could Drive Growth

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Morgan Stanley on Workday

Workday (WDAY) is one of Morgan Stanley’s (MS) top five “secular growth” stock picks. It’s a major player as a cloud applications service provider for finance and human resources in the United States (IVV) (IWM) and globally (ACWI) (VTI).

Keith Weiss, a Morgan Stanley analyst, wrote in a note to his client, “With continued enhancements to the core HR and Financials solutions and Workday in aggressive pursuit of edge use cases in both product markets, we think the company is positioning itself for a much longer and sustained growth trajectory (albeit at potentially lower rates) than investors expect.”

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Morgan Stanley estimates $60 billion of addressable market prospects for Workday (WDAY) due to its recent expansion into the analytics education market. Currently, there’s a huge potential in this market for growth opportunities. Many software application companies are entering into analytics and cloud application services.

Workday’s performance

Workday is currently trading at $86.54. The stock’s 52-week high is $93.35, and its 52-week low is $47.32. Its current price-to-earnings ratio is -48.24x. The stock has a beta of 2.3, which indicates that it’s highly volatile.

On a year-to-date basis, WDAY stock has risen 12.0% as of October 18, 2016. Over a two-year period, it has risen 5.0%. Currently, it’s trading 3.5% above its 100-day moving average and 3.0% below its 20-day moving average.

In the next part, let’s take a look at Alphabet (GOOGL).

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