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Workday (WDAY) Gains But Lags Market: What You Should Know
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Workday (WDAY - Free Report) closed at $254.14 in the latest trading session, marking a +0.51% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.
The upcoming earnings release of Workday will be of great interest to investors. It is anticipated that the company will report an EPS of $1.75, marking a 11.46% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, up 13.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.13 per share and a revenue of $8.41 billion, representing changes of +22.09% and +15.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.13% increase. Workday is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 35.48. This signifies a discount in comparison to the average Forward P/E of 41.55 for its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 1.69. 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 had an average PEG ratio of 3.4 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Workday (WDAY) Gains But Lags Market: What You Should Know
Workday (WDAY - Free Report) closed at $254.14 in the latest trading session, marking a +0.51% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. On the other hand, the Dow registered a loss of 0.06%, and the technology-centric Nasdaq increased by 1.24%.
The upcoming earnings release of Workday will be of great interest to investors. It is anticipated that the company will report an EPS of $1.75, marking a 11.46% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, up 13.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.13 per share and a revenue of $8.41 billion, representing changes of +22.09% and +15.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.13% increase. Workday is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 35.48. This signifies a discount in comparison to the average Forward P/E of 41.55 for its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 1.69. 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 had an average PEG ratio of 3.4 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.