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Workday (WDAY) Stock Sinks As Market Gains: What You Should Know

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Workday (WDAY - Free Report) ended the recent trading session at $237.20, demonstrating a -1.59% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.18%.

Shares of the maker of human resources software have appreciated by 3.24% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.22%, and the S&P 500's gain of 5.71%.

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. Our most recent consensus estimate is calling for quarterly revenue of $2.34 billion, up 12.22% from the year-ago period.

WDAY's full-year Zacks Consensus Estimates are calling for earnings of $8.7 per share and revenue of $9.5 billion. These results would represent year-over-year changes of +19.18% and +12.44%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% decrease. Workday presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Workday is currently trading at a Forward P/E ratio of 27.69. This represents a discount compared to its industry average Forward P/E of 29.49.

Investors should also note that WDAY has a PEG ratio of 1.47 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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