14 Best Software Stocks to Buy According to Wall Street Analysts

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​5. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Holders: 64

Upside: 58.61%

​Workday, Inc. (NASDAQ:WDAY) is one of the Best Software Stocks to Buy According to Wall Street Analysts. On January 20, Mark Moerdler from Bernstein reiterated a Buy rating on the stock with a $298 price target. Earlier on January 12, Goldman Sachs downgraded Workday, Inc. (NASDAQ:WDAY) from Buy to Neutral rating and lowered the price target from $280 to $238.

​Analysts at Goldman Sachs noted that the downgrade is mainly due to two main concerns facing the company. The firm highlighted that the company’s human capital management is much smaller and more crowded with CRM and enterprise resource planning, which limits growth potential for the company. Secondly, Goldman Sachs believes that the company’s AI strategy has taken longer than expected to crystallize. The firm believes that 2026 will be a pivotal year for Workday with integrations like Sana restacking its technology.

​Despite the concerns, the firm sees upside for Workday, Inc. (NASDAQ:WDAY) in 2026, driven by its efforts to improve its AI positioning in the market. The firm expects that these efforts will stabilize growth and improve revenue growth beyond the 13% to 14% mark.

​Workday, Inc. (NASDAQ:WDAY) is a technology company that provides cloud-based software (SaaS) for businesses to manage their finance and human resources functions, including financial management, human capital management (HCM), planning, and payroll.

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