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Workday (WDAY) Gains As Market Dips: What You Should Know
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In the latest trading session, Workday (WDAY - Free Report) closed at $189.54, marking a +0.69% move from the previous day. This change outpaced the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the maker of human resources software had gained 12.62% over the past month. This has outpaced the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Workday will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2023. On that day, Workday is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 18.63% from the prior-year quarter.
Any recent changes to analyst estimates for Workday should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.93% lower. Workday currently has a Zacks Rank of #3 (Hold).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 40.61. This represents a discount compared to its industry's average Forward P/E of 43.18.
Meanwhile, WDAY's PEG ratio is currently 1.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WDAY's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Workday (WDAY) Gains As Market Dips: What You Should Know
In the latest trading session, Workday (WDAY - Free Report) closed at $189.54, marking a +0.69% move from the previous day. This change outpaced the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the maker of human resources software had gained 12.62% over the past month. This has outpaced the Computer and Technology sector's gain of 8.43% and the S&P 500's gain of 3.6% in that time.
Workday will be looking to display strength as it nears its next earnings release, which is expected to be February 27, 2023. On that day, Workday is projected to report earnings of $0.89 per share, which would represent year-over-year growth of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $1.63 billion, up 18.63% from the prior-year quarter.
Any recent changes to analyst estimates for Workday should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.93% lower. Workday currently has a Zacks Rank of #3 (Hold).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 40.61. This represents a discount compared to its industry's average Forward P/E of 43.18.
Meanwhile, WDAY's PEG ratio is currently 1.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WDAY's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.