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Workday (WDAY) Surpasses Market Returns: Some Facts Worth Knowing
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Workday (WDAY - Free Report) ended the recent trading session at $230.89, demonstrating a +1.83% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Prior to today's trading, shares of the maker of human resources software had lost 4.28% lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.09, indicating a 19.43% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.34 billion, up 12.22% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.7 per share and revenue of $9.5 billion. These totals would mark changes of +19.18% and +12.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Workday currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 26.05. This signifies a discount in comparison to the average Forward P/E of 28.39 for its industry.
Also, we should mention that WDAY has a PEG ratio of 1.38. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Workday (WDAY) Surpasses Market Returns: Some Facts Worth Knowing
Workday (WDAY - Free Report) ended the recent trading session at $230.89, demonstrating a +1.83% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Prior to today's trading, shares of the maker of human resources software had lost 4.28% lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.09, indicating a 19.43% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.34 billion, up 12.22% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.7 per share and revenue of $9.5 billion. These totals would mark changes of +19.18% and +12.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Workday currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 26.05. This signifies a discount in comparison to the average Forward P/E of 28.39 for its industry.
Also, we should mention that WDAY has a PEG ratio of 1.38. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.