We recently compiled a list of the Jim Cramer’s Game Plan: 13 Stocks in Focus. In this article, we are going to take a look at where Workday, Inc. (NASDAQ:WDAY) stands against the other stocks in Jim Cramer’s game plan.
Jim Cramer, the host of Mad Money, recently discussed the crucial events on Wall Street this week and emphasized the importance of watching upcoming earnings reports. He pointed out that the Thanksgiving period often brings a surge of optimism to the market. However, Cramer expressed concern that this enthusiasm is getting out of hand.
“Thanksgiving tends to unleash the animal spirits of the market in a very positive way. I’m no killjoy… but there’s getting to be a little too much speculation for me and if we don’t deal with it, if I don’t talk about it, it’s gonna become a problem.”
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Cramer also turned his attention to Bitcoin, commenting on the growing buzz around the cryptocurrency. He expressed his hope that Bitcoin would finally reach the $100,000 mark so the conversation could move on. According to Cramer, the surge in Bitcoin’s price is largely tied to speculation fueled by the President-elect’s idea of creating a strategic Bitcoin reserve. He noted that many people who had missed out on Bitcoin when it was trading lower are now justifying their purchases at these higher levels.
“As long as it’s legal, I’m all in but understand, I have nothing to offer on Bitcoin’s $100,000 price tag, nor does anybody else, by the way, except to say this: This is what happens when there are more buyers than sellers.”
Turning to broader market trends, Cramer acknowledged that stock trading tends to slow down during the rest of the holiday week. However, he highlighted that Wednesday would bring the latest personal consumption expenditures (PCE) report from the government. This report, a key inflation measure for the Federal Reserve, could give a clue as to whether the Fed will consider another rate cut before the year ends.
Cramer noted that the economy has been running hotter than the Fed would prefer, which has led to speculation that a rate cut in December might not be necessary. The situation is particularly challenging, he explained, because long-term interest rates, including mortgage rates, have been rising since the Fed began its rate cuts. Normally, these rates would decrease in such an environment, so if the PCE report shows a cooler inflation reading, it could fuel another rally. On the other hand, if the report is hot, Cramer suggested it could trigger a downturn in some of the more speculative stocks.
“If you have huge profits in the month of November, could you do me a favor? I would show a little thanks next week and take something off the table in your most risky positions.”
Our Methodology
For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the recent episode of Mad Money on November 22. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
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).
A group of finance professionals analyzing market trends on their computer screens.
Workday, Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 84
Cramer said that Workday, Inc. (NASDAQ:WDAY) is easy and called it a winner. Here’s what he had to say:
“After the close, we have some big tech names reporting, including some that we own for the Charitable Trust. CrowdStrike, Dell Technologies, Workday. I think we might see these go 3, 4, 3… Workday: easy. It’s enterprise software and suddenly the world loves enterprise software as much as they hated enterprise software earlier in the year. Workday was there early. It’s a winner in the human resources and financial spaces within the enterprise.”
Workday (NASDAQ:WDAY) offers cloud-based enterprise applications that help businesses manage financial, HR, spending, planning, and supply chain operations, with solutions for analytics, reporting, and custom app development. It has been increasingly utilized by city and county governments across the United States. According to a recent announcement by the company, these governments are adopting its AI-powered platform to enhance workforce diversity and make data-driven financial decisions.
Workday (NASDAQ:WDAY) has also focused on expanding its capabilities through acquisitions, further positioning itself for growth. In September, the company entered into a definitive agreement to acquire Evisort, a leading provider of AI-native document intelligence solutions. This acquisition aligns with its vision to integrate AI technologies more deeply into its platform. With the addition of Evisort’s AI-driven document intelligence capabilities, the company plans to enrich its finance and HR offerings.
The integration is expected to allow customers to extract and automate data from documents quickly and accurately, thereby streamlining operations and enabling more informed business decisions. Alerts and insights powered by AI will also help improve decision-making processes across the board. The acquisition is expected to close in the third quarter of the company’s fiscal year 2025, ending on October 31, 2024.
Overall WDAY ranks 1st on our list of the stocks featured in Jim Cramer’s game plan. 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.