Here's the Reason Workday (WDAY) Stands Out as a High-Growth Stock

Maximize Your Investing Potential with Zacks Premium

No matter your background or level of expertise, every investor aims to make the most of the stock market and invest with assurance. Zacks Premium provides a variety of tools to help you reach these objectives.

Subscribers gain access to daily updates on Zacks Rank and Industry Rank, the complete Zacks #1 Rank List, in-depth Equity Research reports, and exclusive stock screening features. These resources are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium offers the Zacks Style Scores for further insight.

Understanding Zacks Style Scores

The Zacks Style Scores are a specialized rating system that evaluates stocks based on three widely-used investment strategies. Developed to complement the Zacks Rank, these scores help investors identify stocks with the best chance of outperforming the market over the next month.

Each stock receives a grade—A, B, C, D, or F—based on its value, growth, and momentum attributes. Higher scores indicate a greater likelihood of outperformance; for example, an A is superior to a B, and so forth.

The Style Scores are divided into four distinct categories:

Value Score

Value investors seek undervalued stocks that are trading below their intrinsic worth. The Value Score uses metrics such as P/E, PEG, Price/Sales, Price/Cash Flow, and other ratios to highlight stocks that are attractively priced and offer significant discounts.

Growth Score

Growth investors focus on a company's future potential and financial stability. The Growth Score examines factors like projected and historical earnings, sales, and cash flow to identify stocks poised for sustained expansion.

Momentum Score

Momentum investing revolves around capitalizing on trends in stock prices or earnings forecasts. The Momentum Score helps pinpoint optimal times to invest by analyzing short-term price movements and changes in earnings estimates.

VGM Score

For those seeking a blend of all three Style Scores, the VGM Score combines value, growth, and momentum ratings. This composite score assists in finding stocks with the strongest overall attributes and works especially well alongside the Zacks Rank.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary stock rating system that leverages earnings estimate revisions to guide investors in building successful portfolios.

Its track record is impressive: since 1988, stocks rated #1 (Strong Buy) have delivered an average annual return of +23.93%, more than twice the performance of the S&P 500. With over 200 Strong Buy stocks and 600 Buy-rated stocks available daily, the selection can be daunting.

With so many highly-rated options, choosing the best fit for your investment strategy can be overwhelming.

This is where the Style Scores prove invaluable.

To maximize your chances of success, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If you’re considering a stock with a #3 (Hold) rating, ensure it also has an A or B Style Score to optimize its upside potential.

Always consider the direction of earnings estimate revisions when selecting stocks, as the Style Scores are designed to work in tandem with the Zacks Rank.

For example, stocks rated #4 (Sell) or #5 (Strong Sell), even if they have high Style Scores, are likely to experience declining earnings forecasts and share prices.

Owning more stocks with a #1 or #2 Rank and A or B Style Scores increases your likelihood of achieving strong returns.

Featured Stock: Workday (WDAY)

Established in 2005 and based in Pleasanton, California, Workday Inc. (WDAY) delivers enterprise software solutions for finance and human resources. Its cloud-based platform integrates financial and HR functions, enabling organizations to gain valuable analytics and support informed decision-making.

Currently, WDAY holds a #3 (Hold) Zacks Rank and a VGM Score of B.

The company stands out for growth investors, boasting a Growth Style Score of A and projected earnings growth of 14.2% for the current fiscal year.

Over the past 60 days, four analysts have raised their earnings estimates for fiscal 2027, and the Zacks Consensus Estimate now sits at $10.54 per share. WDAY has also delivered an average earnings surprise of +8.5%.

With strong rankings in both Growth and VGM Style Scores, Workday deserves consideration from investors seeking promising opportunities.

Top Analyst’s “Best Pick to Double”

Among thousands of stocks, five Zacks experts have each selected their top choice expected to surge by 100% or more in the coming months. From these, Director of Research Sheraz Mian has identified one stock with the greatest potential for explosive growth.

This company appeals to millennial and Gen Z consumers and generated nearly $1 billion in revenue last quarter. A recent price dip makes now an opportune moment to invest. While not all elite picks succeed, this one could outperform previous Zacks selections like Nano-X Imaging, which soared +129.6% in just over nine months.

Looking for the latest stock recommendations from Zacks Investment Research? Download the 7 Best Stocks for the Next 30 Days now.