Shares of enterprise software expert Workday (NASDAQ: WDAY) rose 24.6% in August 2018, according to data from S&P Global Market Intelligence. In a relatively quiet month, investors and analysts alike boosted the stock in anticipation of a strong second-quarter report in early September.
Continue Reading Below
At least five analyst firms published bullish reports on Workday last month, citing good-looking industry checks ahead of the second-quarter business update and a solid deal pipeline beyond that event.
The actual report delivered on those promises by beating Wall Street's consensus targets across the board. However, Workday's stock closed 9% lower the next day as management's third-quarter guidance targets failed to impress.
It's not terribly surprising to see Workday's ultra-volatile stock making wild swings around any earnings presentation. It's just how this stock rolls. Even now, on the heels of solid gains in August and a sharp correction in early September, Workday investors are enjoying a market-stomping 33% return in 52 weeks and a 16% three-month gain. And since the stock trades at a hair-raising 93 times forward earnings estimates or 188 times trailing free cash flows, you should expect Workday's wild swings to continue unabated.
Find out why Workday is one of the 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)
Tom and David just revealed their ten top stock picks for investors to buy right now. Workday is on the list -- but there are nine others you may be overlooking.
*Stock Advisor returns as of August 6, 2018