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Workday (WDAY) Stock Sinks As Market Gains: Here's Why
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In the latest trading session, Workday (WDAY - Free Report) closed at $129.72, marking a -1.92% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.54%.
Shares of the maker of human resources software witnessed a loss of 12.43% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.47%, and the S&P 500's loss of 3.31%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.49, signifying a 11.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.52 billion, indicating a 12.37% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.54 per share and a revenue of $10.66 billion, representing changes of +14.19% and +11.56%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 12.55. For comparison, its industry has an average Forward P/E of 19.28, which means Workday is trading at a discount to the group.
We can additionally observe that WDAY currently boasts a PEG ratio of 0.62. 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 1.07 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Workday (WDAY) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Workday (WDAY - Free Report) closed at $129.72, marking a -1.92% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.36%, and the technology-centric Nasdaq increased by 0.54%.
Shares of the maker of human resources software witnessed a loss of 12.43% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.47%, and the S&P 500's loss of 3.31%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.49, signifying a 11.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.52 billion, indicating a 12.37% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.54 per share and a revenue of $10.66 billion, representing changes of +14.19% and +11.56%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 12.55. For comparison, its industry has an average Forward P/E of 19.28, which means Workday is trading at a discount to the group.
We can additionally observe that WDAY currently boasts a PEG ratio of 0.62. 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 1.07 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.