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Workday (WDAY) Stock Declines While Market Improves: Some Information for Investors

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Workday (WDAY - Free Report) closed the most recent trading day at $232.21, moving -3.54% from the previous trading session. This move lagged the S&P 500's daily gain of 0.34%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.

Coming into today, shares of the maker of human resources software had gained 5.17% in the past month. In that same time, the Computer and Technology sector gained 8.07%, while the S&P 500 gained 3.54%.

Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.12, marking a 12.17% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 11.84% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.84 per share and a revenue of $9.51 billion, representing changes of +21.1% and +12.63%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Workday. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.58% upward. Workday is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Workday is holding a Forward P/E ratio of 27.22. This indicates a discount in contrast to its industry's Forward P/E of 30.19.

We can also see that WDAY currently has a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 2.3 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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