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Workday (WDAY) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Workday (WDAY - Free Report) closed at $225.05, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the maker of human resources software had gained 0.6% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Workday will be looking to display strength as it nears its next earnings release. In that report, analysts expect Workday to post earnings of $1.24 per share. This would mark year-over-year growth of 49.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.77 billion, up 15.48% from the year-ago period.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $7.17 billion. These results would represent year-over-year changes of +45.33% and +15.37%, respectively.
Investors should also note any recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 3.01% higher. Workday is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 42.02. Its industry sports an average Forward P/E of 43.5, so we one might conclude that Workday is trading at a discount comparatively.
Investors should also note that WDAY has a PEG ratio of 1.7 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Workday (WDAY - Free Report) closed at $225.05, marking a +1.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the maker of human resources software had gained 0.6% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Workday will be looking to display strength as it nears its next earnings release. In that report, analysts expect Workday to post earnings of $1.24 per share. This would mark year-over-year growth of 49.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.77 billion, up 15.48% from the year-ago period.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $7.17 billion. These results would represent year-over-year changes of +45.33% and +15.37%, respectively.
Investors should also note any recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 3.01% higher. Workday is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 42.02. Its industry sports an average Forward P/E of 43.5, so we one might conclude that Workday is trading at a discount comparatively.
Investors should also note that WDAY has a PEG ratio of 1.7 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.