Workday Inc (WDAY), Cornerstone OnDemand, Inc. (CSOD), Salesforce.com (CRM): Has This Momentum Stock Run Its Course? And What About Its Industry?

Not to mention, Salesforce.com (NYSE:CRM) is growing fast at 30% year-over-year, working with federal, state, and local governments in addition to large and small corporations. The company offers diversified sales, services, and marketing products through the cloud on both mobile and desktop form. It is the quintessential enterprise software company, and at just 8.3 times sales, it is quite cheap by industry standards.

Final thoughts

When you consider the growth and value spread throughout this space, it is not difficult to understand why investors may be growing tired of buying Workday at 34 times sales.

In a market where fundamentals and the valuation of a company eventually align, it appears as though Workday has reached a valuation peak, and will have trouble crossing $80 until the company grows large enough to support such a price.

In regards to the noted competitors, I think each look solid, although expensive compared to the S&P 500. In this market, if you want growth, you are going to pay for it, and Salesforce.com (NYSE:CRM), Cornerstone OnDemand, Inc. (NASDAQ:CSOD), and Aspen Technology, Inc. (NASDAQ:AZPN) appear to be solid buys with impressive growth, especially compared to Workday.

The article Has This Momentum Stock Run Its Course? And What About Its Industry? originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. 

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