We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Workday (WDAY) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Workday (WDAY - Free Report) closed at $117.86 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq added 1.96%.
Coming into today, shares of the maker of human resources software had lost 10.26% in the past month. In that same time, the Computer and Technology sector gained 5.37%, while the S&P 500 gained 3.93%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.49, showcasing a 11.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.52 billion, indicating a 12.37% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.54 per share and a revenue of $10.66 billion, indicating changes of +14.19% and +11.56%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Workday currently has a Zacks Rank of #3 (Hold).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 11.38. This expresses a discount compared to the average Forward P/E of 18.17 of its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 0.56. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Workday (WDAY) Stock Sinks As Market Gains: Here's Why
Workday (WDAY - Free Report) closed at $117.86 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq added 1.96%.
Coming into today, shares of the maker of human resources software had lost 10.26% in the past month. In that same time, the Computer and Technology sector gained 5.37%, while the S&P 500 gained 3.93%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.49, showcasing a 11.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.52 billion, indicating a 12.37% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.54 per share and a revenue of $10.66 billion, indicating changes of +14.19% and +11.56%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Workday currently has a Zacks Rank of #3 (Hold).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 11.38. This expresses a discount compared to the average Forward P/E of 18.17 of its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 0.56. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.