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Workday (WDAY) Declines More Than Market: Some Information for Investors
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Workday (WDAY - Free Report) closed the most recent trading day at $233.17, moving -2.18% from the previous trading session. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.
The maker of human resources software's shares have seen an increase of 2.83% over the last month, not keeping up with the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Workday in its upcoming release. The company is forecasted to report an EPS of $2.12, showcasing a 12.17% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.42 billion, indicating a 11.84% upward movement from the same quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $8.84 per share and revenue of $9.51 billion. These results would represent year-over-year changes of +21.1% and +12.63%, respectively.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. As of now, Workday holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 26.95. This signifies a discount in comparison to the average Forward P/E of 30 for its industry.
Investors should also note that WDAY has a PEG ratio of 1.27 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.35 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
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.
To follow WDAY in the coming trading sessions, be sure to utilize Zacks.com.
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Workday (WDAY) Declines More Than Market: Some Information for Investors
Workday (WDAY - Free Report) closed the most recent trading day at $233.17, moving -2.18% from the previous trading session. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.
The maker of human resources software's shares have seen an increase of 2.83% over the last month, not keeping up with the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
Market participants will be closely following the financial results of Workday in its upcoming release. The company is forecasted to report an EPS of $2.12, showcasing a 12.17% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.42 billion, indicating a 11.84% upward movement from the same quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $8.84 per share and revenue of $9.51 billion. These results would represent year-over-year changes of +21.1% and +12.63%, respectively.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. As of now, Workday holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 26.95. This signifies a discount in comparison to the average Forward P/E of 30 for its industry.
Investors should also note that WDAY has a PEG ratio of 1.27 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.35 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
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.
To follow WDAY in the coming trading sessions, be sure to utilize Zacks.com.