Why Workday, Zulily, and Noah Holdings Soared Today

After two days in which stocks rose early in the day but fell back by the close, the S&P 500 finally advanced to a new all-time record high Thursday, with major market benchmarks finishing up about half a percent. Positive comments from Fed chair Janet Yellen helped give investors confidence about the weak economic data that has hit the news lately, and strong performance from Workday (NYSE: WDAY  ) , Zulily (NASDAQ: ZU  ) , and Noah Holdings (NYSE: NOAH  ) helped set the tone for today's record gains.

Workday climbed 15% after the cloud-based human-resources and enterprise software specialist reported strong revenue growth of 74% and a narrower-than-expected loss last night. In an industry that has long been dominated by Oracle (NYSE: ORCL  ) and SAP, Workday's success even as a small competitor has investors excited about its ability to lure even the largest business customers to its offerings. With so much growth ahead of it, Workday's share-price gains today could just be the beginning for the company. Analysts at FBR Capital Markets agreed with the positive assessment, upgrading the stock today and expressing optimism about Workday's future.

For Zulily, today's 18% gain was just the latest in a series of upward movements, with Tuesday's 36% jump coming after the online daily deal company saw revenue double and net income more than triple. What's particularly surprising is the fact that investors apparently have faith that Zulily won't duplicate Groupon's (NASDAQ: GRPN  ) experience in daily deals, even though it's hard to see durable barriers to entry that give Zulily a lasting competitive advantage over any other company that comes into the space.

Noah Holdings rose 16% after the wealth-management company for China's elite posted 81% higher revenue on net income that more than doubled. The company doesn't expect that torrid pace to continue forever, but even more modest guidance for 27% to 34% growth in adjusted earnings per share was enough to make investors optimistic about Noah's future. The primary threat to Noah's success is the risk of a reversal of fortune in what many have called an overheating real-estate market in China, but if the company has advocated a diversified investment strategy for its clients, then even a Chinese implosion might not hurt Noah's prospects going forward.

Find more high-flying stocks
The search for the best stocks is tough one. But David Gardner has found them time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2858114, ~/Articles/ArticleHandler.aspx, 9/3/2015 3:19:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 6 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 3:59 PM
GRPN $4.35 Up +0.06 +1.40%
Groupon, Inc. CAPS Rating: *
NOAH $19.92 Up +0.79 +4.13%
ORCL $36.75 Up +0.74 +2.05%
Oracle CAPS Rating: ****
WDAY $71.11 Up +1.52 +2.18%
Workday CAPS Rating: **
ZU $17.83 Up +0.31 +1.77%
Zulily CAPS Rating: **