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Workday (WDAY) Declines More Than Market: Some Information for Investors
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Workday (WDAY - Free Report) closed at $294.86 in the latest trading session, marking a -0.63% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
Shares of the maker of human resources software have appreciated by 7.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36%.
Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.44, marking a 45.45% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 16.12% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.71 per share and revenue of $7.24 billion, which would represent changes of +56.87% and +16.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Workday currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 51.94. This signifies a premium in comparison to the average Forward P/E of 34.36 for its industry.
We can also see that WDAY currently has a PEG ratio of 1.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Workday (WDAY) Declines More Than Market: Some Information for Investors
Workday (WDAY - Free Report) closed at $294.86 in the latest trading session, marking a -0.63% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.76%.
Shares of the maker of human resources software have appreciated by 7.49% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 3.36%.
Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.44, marking a 45.45% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 16.12% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.71 per share and revenue of $7.24 billion, which would represent changes of +56.87% and +16.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. Workday currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 51.94. This signifies a premium in comparison to the average Forward P/E of 34.36 for its industry.
We can also see that WDAY currently has a PEG ratio of 1.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.