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Workday (WDAY) Stock Moves -0.23%: What You Should Know

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Workday (WDAY - Free Report) closed the latest trading day at $301.98, indicating a -0.23% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.6%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.

The the stock of maker of human resources software has risen by 4.41% in the past month, leading the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 3.56%.

Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 26, 2024. The company's earnings per share (EPS) are projected to be $1.44, reflecting a 45.45% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.91 billion, reflecting a 16.23% rise from the equivalent quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Workday presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 46.7. This denotes a premium relative to the industry's average Forward P/E of 31.91.

It's also important to note that WDAY currently trades at a PEG ratio of 1.76. 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. The Internet - Software industry had an average PEG ratio of 1.87 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% 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.

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