🚀 Today's Big Ideas: Workday, MongoDB, Goldman Sachs
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TODAY'S BIG IDEAS
WORKDAY INC-poised to rally +12.1% rally in 3 months
MONGODB INC poised to rally +24.7% rally in 3 months
GOLDMAN SACHS GROUP INC sets up for +6.7% rally in 2 months
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(1) Score 8 (out of 10): WORKDAY INC-CLASS A poised to rally +12.1% rally in 3 months
What’s Going On Here?
WORKDAY is in the human capital cloud-based applications business. The company should benefit from the currently strong US labor market as well as help companies to streamline their HR functions. While the company posted earnings of $0.73 in the quarter a year ago, analysts are now expecting that Workday will post just $0.71 for this quarter (Feb 25 is the earnings date). The stock price has adjusted lower in recent days.
Why Now?
WORKDAY INC-CLASS A has reached a new medium term low. Previously, during similar occasions, WORKDAY INC-CLASS A shares had a median return of +12.1%, over the following 3 months based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for WORKDAY INC-CLASS A received a high score of 8 (out of 10). This insight was generated on 2022-January-4 with last price of 253.06.
What’s This Company About?
WORKDAY INC-CLASS A is in the Enterprise Software/Serv business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 30.3% more (average). Ticker symbol: WDAY US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 283.76 (+12.1%) has been reached. Based on WORKDAY INC-CLASS A’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 230.56 (last price at 253.06), which is equivalent to a -8.9% decline.
(2) Score 7.8 (out of 10): MONGODB INC poised to rally +24.7% rally in 3 months
What’s Going On Here?
MONGODB, the database software company, was named by Goldman Sachs as one of their top picks for 2022 as a company with ‘hyper-growth and product leadership’. Last month, the shares jumped +21% (Dec 7) after MongoDB released better-than-expected earnings, however the shares have given back those gains.
Why Now?
MONGODB INC has reached a new shorter-term low. Previously, during similar occasions, MONGODB INC shares had a median return of +24.7%, over the following 3 months based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for MONGODB INC received a high score of 7.8 (out of 10). This insight was generated on 2022-January-4 with last price of 465.37.
What’s This Company About?
MONGODB INC is in the Computer Software business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 20.5% more (average). Ticker symbol: MDB US.
What’s My Risk / Reward and Time Horizon?
We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 580.48 (+24.7%) has been reached. Based on MONGODB INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 391.57 (last price at 465.37), which is equivalent to a -15.9% decline.
(3) Score 7.8 (out of 10): GOLDMAN SACHS GROUP INC sets up for +6.7% rally in 2 months
What’s Going On Here?
The analyst community is expecting +13% returns for GOLDMAN SACHS shares this year, this compares to +9% expectations for Morgan Stanley and just +7% for JP Morgan. Goldman will report earnings on Jan 14 and the company surprised with an earnings beat of +52% during the previous earnings announcement.
Why Now?
GOLDMAN SACHS GROUP INC has reached a new shorter-term high. Previously, during similar occasions, GOLDMAN SACHS GROUP INC shares had a median return of +6.7%, over the following 2 months – based on 10 historical occasions with 8 of those showing positive returns (80% hit ratio). This buy signal for GOLDMAN SACHS GROUP INC received a high score of 7.8 (out of 10). This insight was generated on 2022-January-4 with last price of 407.48.
What’s This Company About?
GOLDMAN SACHS GROUP INC is in the Diversified Banking Inst business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 12.2% more (average). Ticker symbol: GS US.
What’s My Risk / Reward and Time Horizon?
We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 434.76 (+6.7%) has been reached. Based on GOLDMAN SACHS GROUP INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 384.28 (last price at 407.48), which is equivalent to a -5.7% decline.
For more investment insights, please visit us at www.LongShortBets.com