We recently compiled a list of the 10 Best Cloud Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Workday Inc (NASDAQ:WDAY) stands against the other cloud stocks.
Based on a report by MarketsandMarkets, the global cloud industry in 2025 is projected to grow by 15.1% to $1,256.8 billion. While 2024 was marked by high adoption by the BFSI sector, the year ahead should see applications being developed that meet the unique specifications of each industry. North America and Europe should capture the bulk of the market size but APAC is expected to register the fastest growth. The integration of AI with cloud platforms accompanied by new service models is another key development expected to shape this industry.
Cloud ETFs have generated generous returns of 2.74%, 28.54% and 11.00% for 1-month, 6-month and 1-year tenors. One would assume that the underlying stocks would continue to perform well, propelled by strong industrial tailwinds.
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For this article we picked 10 cloud stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Workday Inc (NASDAQ:WDAY)
Number of Hedge Fund Investors: 84
Workday Inc (NASDAQ:WDAY) offers enterprise cloud solutions that cater to areas like Finance and HR. Guggenheim has upgraded its rating on the stock from Sell to Neutral, as the company adopts a new strategy of targeting smaller businesses. It also continues to focus on innovation by working closely with its partners and service providers.
The recent quarterly performance has been robust, with revenue growing 15.8% compared to the same period last year. Operating margin increased from 4.7% to 7.6%, with diluted net income per share at $0.72, 67% higher than the previous year. It is not surprising that it was named a leader at the Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises. WDAY continues to capture new clients amidst a strong culture of innovation. A number of its customers have subscribed to the full suite of products offered in Workday Financial Management and Workday Human Capital Management (HCM). A newer version of Workday Assistant is set to streamline the Finance and HR process.
Overall WDAY ranks 7th on our list of the best cloud stocks to buy according to hedge funds. While we acknowledge the potential of WDAY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WDAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
