Top Stock Picks for Week of October 21, 2024

Workday Inc. (WDAY Quick QuoteWDAY - Free Report) is a provider of enterprise-level software solutions for financial management and human resource domains.Workday’s revenue growth continues to be driven by high demand for its HCM and financial management solutions. The company’s cloud-based business model and expanding product portfolio have been the primary growth drivers. Management is putting a strong focus on integrating advanced AI and ML capabilities across its product suite. Strategic collaboration and partnership across the globe expand its global footprint and expedite the growth of the Workday ecosystem. Workday Government Cloud solutions are gaining significant traction worldwide. Workday has a strong balance sheet with ample liquidity. In terms of earnings estimate revisions for Workday, the Zacks Consensus Estimate for the current year has increased over the past month. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

Tesla (TSLA Quick QuoteTSLA - Free Report) has evolved into a dynamic technology innovator.With competition intensifying in the EV space, Tesla’s focus on autonomous driving and artificial intelligence (AI) is expected to be a game changer. It aims to launch affordable vehicles, transition into an AI company and is banking on its robotaxi venture. The expected rollout of Tesla-supervised Full Self Driving (FSD) software in China and Europe by the end of the year will boost prospects. Additionally, TSLA’s Energy Generation and Storage business is thriving. While near-term challenges persist, long-term prospects appear promising, driven by its big bet on driverless software and AI. The company’s plans to produce new affordable EV models sooner than expected bodes well.  High liquidity and low leverage provide Tesla with the financial flexibility to tap growth opportunities. Its long-term debt-to-capitalization of around 7% compares favorably with the industry’s 40%.