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Workday (WDAY) Surpasses Market Returns: Some Facts Worth Knowing
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Workday (WDAY - Free Report) closed the most recent trading day at $208.90, moving +1.51% from the previous trading session. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
The maker of human resources software's shares have seen a decrease of 6.44% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. In that report, analysts expect Workday to post earnings of $2.3 per share. This would mark year-over-year growth of 19.79%. In the meantime, our current consensus estimate forecasts the revenue to be $2.52 billion, indicating a 14.11% growth compared to the corresponding quarter of the prior year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $9.07 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +24.25% and +12.99%, respectively.
Investors should also note any recent changes to analyst estimates for Workday. Such recent modifications usually signify the changing landscape of 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Right now, Workday possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 22.7 right now. This expresses a discount compared to the average Forward P/E of 24.2 of its industry.
Also, we should mention that WDAY has a PEG ratio of 1.05. 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 1.54.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) closed the most recent trading day at $208.90, moving +1.51% from the previous trading session. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
The maker of human resources software's shares have seen a decrease of 6.44% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. In that report, analysts expect Workday to post earnings of $2.3 per share. This would mark year-over-year growth of 19.79%. In the meantime, our current consensus estimate forecasts the revenue to be $2.52 billion, indicating a 14.11% growth compared to the corresponding quarter of the prior year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $9.07 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +24.25% and +12.99%, respectively.
Investors should also note any recent changes to analyst estimates for Workday. Such recent modifications usually signify the changing landscape of 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. Right now, Workday possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 22.7 right now. This expresses a discount compared to the average Forward P/E of 24.2 of its industry.
Also, we should mention that WDAY has a PEG ratio of 1.05. 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 1.54.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.