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Workday (WDAY) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Workday (WDAY - Free Report) reached $239.47, with a +1.7% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.

Shares of the maker of human resources software witnessed a loss of 7.12% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 8.21% and the S&P 500's gain of 5.41%.

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 $1.72, marking a 12.42% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.13 billion, up 13.98% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.97 per share and a revenue of $8.39 billion, indicating changes of +19.35% and +15.6%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Workday. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 5.84% higher. Workday is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Workday currently has a Forward P/E ratio of 33.8. This indicates a premium in contrast to its industry's Forward P/E of 31.75.

It's also important to note that WDAY currently trades at a PEG ratio of 1.61. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.99.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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