Investors can find buying opportunities in Workday and Lowe’s after their encouraging financial results, according to Miller Tabak chief market strategist Matt Maley. Maley appeared on CNBC’s “Power Lunch” on Wednesday to give his takes on some of the market’s biggest movers of the day. Here is what he said during “Three-Stock Lunch.” Workday Maley is looking to pick up shares of the finance and human resources software provider, which climbed more than 6% on Wednesday after posting fourth-quarter earnings and revenue that beat analysts’ estimates. Although the strategist was worried about Workday’s slowing subscriber growth, he turned positive on the stock after the company boasted increased profit margins in the latest quarter. Maley is also optimistic on the company’s effort to lift international sales. Workday gets 75% of its sales domestically, and is seeking to broaden that inside the U.S. to include more small- and mid-size companies, as well as internationally, he noted. “If they can grow that kind of earnings growth from overseas, that’s gonna be very bullish, especially because the stock is kind of fairly right in the middle of its five-year range in terms of price to earnings ratio,” Maley said. Workday’s shares are up 5% this year, but are still down almost 12% over the past year. WDAY 1Y mountain Workday stock performance over the past year. Instacart Grocery delivery company Instacart , formally known as Maplebear Inc., is a name to avoid, according to Maley. The strategist believes signs of weakness in consumer spending, such as spiking credit card delinquency levels, could ultimately hit Instacart’s business as individuals hold back on discretionary spending. How much consumers are prepared to pay “for this kind of grocery and food delivery is a concern for me,” Maley said. “I love the concept, but they’re talking about making it more affordable. Are they going to be able to do that and still maintain their margins? So this is one I want to avoid and not buy on a dip.” Shares slid more than 12% Wednesday after Instacart posted weaker-than-expected fourth-quarter revenue and gave downbeat guidance for the current quarter. The stock is still roughly 36% higher over the past year, but faces stiff competition ahead. Investors are also weighing the effect of Amazon’s new artificial intelligence-powered Alexa Plus model, which would be able to complete tasks such as placing grocery orders with Instacart. Lowe’s Maley is a fan of home improvement retailer Lowe’s, but only as a long-term holding. “Housing stocks have been getting beaten up completely,” Maley said, noting recent weak housing starts data and Wednesday’s worse-than-expected new home sales. That data “does make me concerned, but longer-term, I do like the stock and I think that you may not necessarily want to chase it on this bounce, but it’s okay to buy over time,” he said. A couple of positive trends still support the stock, Maley said, including the rebuilding of Los Angeles after its wildfires and continued interest among homeowners looking to improve their existing dwellings rather than taking on a higher-rate mortgage to trade up or downsize. Shares of Lowe’s gained almost 2% Wednesday after fourth-quarter earnings exceeded Wall Street estimates, reflecting positive same-store sales growth for the first time in about two years. The stock is little changed in 2025 but is up about 9% over the past year. LOW 1Y mountain Lowe’s stock performance.
Investors can find buying opportunities in Workday and Lowe’s after their encouraging financial results, according to Miller Tabak chief market strategist Matt Maley.
Maley appeared on CNBC’s “Power Lunch” on Wednesday to give his takes on some of the market’s biggest movers of the day. Here is what he said during “Three-Stock Lunch.”
Workday
Maley is looking to pick up shares of the finance and human resources software provider, which climbed more than 6% on Wednesday after posting fourth-quarter earnings and revenue that beat analysts’ estimates.
Although the strategist was worried about Workday’s slowing subscriber growth, he turned positive on the stock after the company boasted increased profit margins in the latest quarter. Maley is also optimistic on the company’s effort to lift international sales. Workday gets 75% of its sales domestically, and is seeking to broaden that inside the U.S. to include more small- and mid-size companies, as well as internationally, he noted.
“If they can grow that kind of earnings growth from overseas, that’s gonna be very bullish, especially because the stock is kind of fairly right in the middle of its five-year range in terms of price to earnings ratio,” Maley said.
Workday’s shares are up 5% this year, but are still down almost 12% over the past year.
Workday stock performance over the past year.
Instacart
Grocery delivery company Instacart, formally known as Maplebear Inc., is a name to avoid, according to Maley.
The strategist believes signs of weakness in consumer spending, such as spiking credit card delinquency levels, could ultimately hit Instacart’s business as individuals hold back on discretionary spending.
How much consumers are prepared to pay “for this kind of grocery and food delivery is a concern for me,” Maley said. “I love the concept, but they’re talking about making it more affordable. Are they going to be able to do that and still maintain their margins? So this is one I want to avoid and not buy on a dip.”
Shares slid more than 12% Wednesday after Instacart posted weaker-than-expected fourth-quarter revenue and gave downbeat guidance for the current quarter.
The stock is still roughly 36% higher over the past year, but faces stiff competition ahead. Investors are also weighing the effect of Amazon’s new artificial intelligence-powered Alexa Plus model, which would be able to complete tasks such as placing grocery orders with Instacart.
Lowe’s
Maley is a fan of home improvement retailer Lowe’s, but only as a long-term holding.
“Housing stocks have been getting beaten up completely,” Maley said, noting recent weak housing starts data and Wednesday’s worse-than-expected new home sales. That data “does make me concerned, but longer-term, I do like the stock and I think that you may not necessarily want to chase it on this bounce, but it’s okay to buy over time,” he said.
A couple of positive trends still support the stock, Maley said, including the rebuilding of Los Angeles after its wildfires and continued interest among homeowners looking to improve their existing dwellings rather than taking on a higher-rate mortgage to trade up or downsize.
Shares of Lowe’s gained almost 2% Wednesday after fourth-quarter earnings exceeded Wall Street estimates, reflecting positive same-store sales growth for the first time in about two years. The stock is little changed in 2025 but is up about 9% over the past year.
