Workday: The Drop And The New Offerings Made Me Buy

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About: Workday, Inc. (WDAY)
by: From Growth to Value
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From Growth to Value
Long-term horizon, long only, dividend investing, growth at reasonable price
Summary

Workday injects AI into the office space and is, therefore, a stock of the 21st century.

Workday's stock has dropped because the general SaaS was down and then it fell further because of a consensus miss for the guidance for the next quarter.

Workday is at a P/S ratio of 11 now and historically a P/S of 10 was Workday's bottom.

The new product offerings that come out next year and the accretive acquisitions will only have a meaningful impact in FY 2022 (next year).

Therefore, the stock price of Workday may be hanging around this level for 12 to 16 months, giving long-term investors a window to scale into the stock.

Introduction

Finally, growth stocks had a big jump at the end of last week. Despite the revival, a lot of growth stocks are still considerably below their 52-week highs. That, of course, doesn't automatically mean