5 Cloud Software Stocks with Strong Growth Potential

3. Workday, Inc. (NASDAQ: WDAY)

Number of Hedge Fund Holders: 72  

Year-on-Year Revenue Growth: 16.98%  

Workday, Inc. (NASDAQ: WDAY) is a California-based firm that provides enterprise cloud applications. It is ranked third on our list of 10 cloud software stocks with strong growth potential.

On September 2, investment advisory Jefferies maintained a Buy rating on Workday, Inc. (NASDAQ: WDAY) stock and raised the price target to $320 from $300, noting the impact of investments by the firm into the workforce. 

At the end of the second quarter of 2021, 72 hedge funds in the database of Insider Monkey held stakes worth $5.18 billion in Workday, Inc. (NASDAQ: WDAY), up from 69 in the previous quarter worth $5.17 billion.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Workday, Inc. (NASDAQ: WDAY) was one of them. Here is what the fund said:

“In addition to the new issue market, we have been tactically adding growth exposure. We took advantage of the selloff in disruptors that comprise a large portion of the portfolio to initiate a position in enterprise software maker Workday.”