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Workday (WDAY) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Workday (WDAY - Free Report) closed at $137.99, marking a +1.91% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the maker of human resources software have depreciated by 6.15% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.12%, and the S&P 500's loss of 0.9%.
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 $2.62 per share. This would mark year-over-year growth of 18.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, up 12.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.75 per share and a revenue of $10.66 billion, signifying shifts of +16.47% and +11.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 moved 0.99% lower. At present, Workday boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 12.6 right now. Its industry sports an average Forward P/E of 19.82, so one might conclude that Workday is trading at a discount comparatively.
Meanwhile, WDAY's PEG ratio is currently 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
View the Zacks #1 Rank List
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Workday (WDAY) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Workday (WDAY - Free Report) closed at $137.99, marking a +1.91% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the maker of human resources software have depreciated by 6.15% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.12%, and the S&P 500's loss of 0.9%.
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 $2.62 per share. This would mark year-over-year growth of 18.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.63 billion, up 12.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.75 per share and a revenue of $10.66 billion, signifying shifts of +16.47% and +11.58%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 moved 0.99% lower. At present, Workday boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 12.6 right now. Its industry sports an average Forward P/E of 19.82, so one might conclude that Workday is trading at a discount comparatively.
Meanwhile, WDAY's PEG ratio is currently 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.