5 Best Staffing Company Stocks To Buy Now

2. Workday, Inc. (NYSE:WDAY)

Number of Hedge Fund Holders: 71

Workday, Inc. (NYSE:WDAY) is a leading provider of enterprise cloud applications in the United States and internationally. The company offers a comprehensive Human Capital Management suite that allows businesses to manage the entire employee lifecycle from recruitment to retirement. The company has exposure to a variety of industries including professional & business services, financial services, healthcare, education, government, technology, media, retail, and hospitality. Workday, Inc. (NYSE:WDAY) has a strong cash position and a leading industry position, which justifies its ranking among the best staffing stocks to buy now. The company has free cash flows of over $1.2 billion.

On September 14, Morgan Stanley analyst Keith Weiss reiterated an Overweight rating and his $282 price target on Workday, Inc. (NYSE:WDAY). This September, Canaccord analyst David Hynes maintained a Buy rating and his $200 price target on Workday, Inc. (NYSE:WDAY).

At the end of Q2 2022, 71 hedge funds disclosed ownership of stakes in Workday, Inc. (NYSE:WDAY). The total value of these stakes amounted to $3.71 billion. As of June 30, Lone Pine Capital is the leading investor in Workday, Inc. (NYSE:WDAY) and has stakes worth $700.5 million in the company.

Here is what RiverPark Funds had to say about Workday, Inc. (NYSE:WDAY) in its third-quarter 2022 investor letter:

“We also added a small position in Workday this quarter, taking advantage of its 2022 price decline. WDAY is a leading SaaS software solutions provider with two key subparts: Workday HCM offering end-to-end software for human resource departments, and Workday Financial Management for planning, spending, auditing, analytics, and reporting. The company sells to more than 9,500 medium-sized through enterprise customers across more than 175 countries, including more than 50% of the Fortune 500.

The company is benefitting from the secular shift to digitization for businesses and despite its 21% annual subscription revenue CAGR over the past 2 years (with 95%+ gross revenue retention), Workday still has less than 5% penetration of its $105 billion TAM. We believe the company can grow its top-line high-teens over the long-term, while continuing to improve margins (non-GAAP gross operating margin expanded 900 basis points to 22.4% over the past two years), leading to approximately 30% EPS growth for the foreseeable future. The company also requires limited capital expenditures, producing significant and growing FCF ($1.4b last year, up 37% year over year), which WDAY has used for acquisitions and debt repayment.”