Why Workday (WDAY) is Setting Up for a Big Move in December

A significant move in shares of Workday (WDAY) is expected soon, as a symmetrical triangle pattern has formed in its chart…

Workday, Inc. (WDAY) is a software company that offers human capital management, financial management, and business planning solutions. The company’s cloud-based platform combines finance and HR in a single system making it easier for companies to provide insights and decision support.

The company is benefiting from strong adoption of its subscription-based software solutions, which were reflected in its third quarter results. Earnings were up 62.3% year over year. Management also raised its fiscal 2021 guidance for subscription revenues on the back of a strong pipeline.

WDAY has a history of strong revenue growth, which is expected to continue next year. The company also has a strong balance sheet with a net cash balance of $1.2 billion as of October 31st, up from $964 million in the previous quarter.

The stock is trading a high valuation, with a Price to Sales ratio of 12.7 and a Price to Book ratio of 17.6, both higher than the industry averages. WDAY has shown strong near, mid, and long-term momentum, which has resulted in a “Buy” Rating in our POWR Ratings system. The stock also holds a grade of “A” in Trade Grade.

Take a look at the 1-year chart of WDAY below with my added notations…

See chart and continue reading at STOCKNEWS.com