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Workday (WDAY) Stock Slides as Market Rises: Facts to Know Before You Trade
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Workday (WDAY - Free Report) closed the most recent trading day at $126.60, moving -1.98% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.05% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.64%.
Shares of the maker of human resources software have depreciated by 0.1% over the course of the past month, underperforming the Computer and Technology sector's gain of 12.58%, and the S&P 500's gain of 8.59%.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.49, reflecting a 11.66% increase from the same quarter last 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.54 per share and a revenue of $10.66 billion, signifying shifts of +14.19% and +11.56%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Workday holds a Zacks Rank of #3 (Hold).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 12.26. Its industry sports an average Forward P/E of 19.2, so one might conclude that Workday is trading at a discount comparatively.
It's also important to note that WDAY currently trades at a PEG ratio of 0.61. 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. The Internet - Software was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Slides as Market Rises: Facts to Know Before You Trade
Workday (WDAY - Free Report) closed the most recent trading day at $126.60, moving -1.98% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.05% for the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.64%.
Shares of the maker of human resources software have depreciated by 0.1% over the course of the past month, underperforming the Computer and Technology sector's gain of 12.58%, and the S&P 500's gain of 8.59%.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.49, reflecting a 11.66% increase from the same quarter last 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.54 per share and a revenue of $10.66 billion, signifying shifts of +14.19% and +11.56%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Workday holds a Zacks Rank of #3 (Hold).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 12.26. Its industry sports an average Forward P/E of 19.2, so one might conclude that Workday is trading at a discount comparatively.
It's also important to note that WDAY currently trades at a PEG ratio of 0.61. 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. The Internet - Software was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.