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Workday (WDAY) Stock Sinks As Market Gains: Here's Why
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Workday (WDAY - Free Report) closed at $139.81 in the latest trading session, marking a -3.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
Coming into today, shares of the maker of human resources software had gained 11.78% in the past month. In that same time, the Computer and Technology sector lost 1.5%, while the S&P 500 gained 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.62, reflecting a 18.55% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.63 billion, showing a 12.18% escalation compared to the year-ago quarter.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $10.66 billion. These results would represent year-over-year changes of +16.47% and +11.58%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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 past month, the Zacks Consensus EPS estimate has shifted 0.99% downward. Workday is currently a Zacks Rank #3 (Hold).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 13.48. This denotes a discount relative to the industry average Forward P/E of 20.06.
Also, we should mention that WDAY has a PEG ratio of 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Workday (WDAY) Stock Sinks As Market Gains: Here's Why
Workday (WDAY - Free Report) closed at $139.81 in the latest trading session, marking a -3.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 0.9%.
Coming into today, shares of the maker of human resources software had gained 11.78% in the past month. In that same time, the Computer and Technology sector lost 1.5%, while the S&P 500 gained 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.62, reflecting a 18.55% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.63 billion, showing a 12.18% escalation compared to the year-ago quarter.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $10.66 billion. These results would represent year-over-year changes of +16.47% and +11.58%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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 past month, the Zacks Consensus EPS estimate has shifted 0.99% downward. Workday is currently a Zacks Rank #3 (Hold).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 13.48. This denotes a discount relative to the industry average Forward P/E of 20.06.
Also, we should mention that WDAY has a PEG ratio of 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.