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Workday (WDAY) Stock Dips While Market Gains: Key Facts
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Workday (WDAY - Free Report) ended the recent trading session at $158.11, demonstrating a -5.89% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.66%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 2.78%.
Shares of the maker of human resources software witnessed a gain of 28.97% over the previous month, beating the performance of the Computer and Technology sector with its loss of 7.65%, and the S&P 500's loss of 1.49%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. The company is forecasted to report an EPS of $2.63, showcasing a 19% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, up 12.18% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.81 per share and a revenue of $10.66 billion, indicating changes of +17.12% and +11.58%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. Workday presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Workday currently has a Forward P/E ratio of 15.54. For comparison, its industry has an average Forward P/E of 20.68, which means Workday is trading at a discount to the group.
It is also worth noting that WDAY currently has a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.18.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 41% echelons of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Workday (WDAY) Stock Dips While Market Gains: Key Facts
Workday (WDAY - Free Report) ended the recent trading session at $158.11, demonstrating a -5.89% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.66%. On the other hand, the Dow registered a gain of 1.19%, and the technology-centric Nasdaq increased by 2.78%.
Shares of the maker of human resources software witnessed a gain of 28.97% over the previous month, beating the performance of the Computer and Technology sector with its loss of 7.65%, and the S&P 500's loss of 1.49%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. The company is forecasted to report an EPS of $2.63, showcasing a 19% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, up 12.18% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.81 per share and a revenue of $10.66 billion, indicating changes of +17.12% and +11.58%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. Workday presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Workday currently has a Forward P/E ratio of 15.54. For comparison, its industry has an average Forward P/E of 20.68, which means Workday is trading at a discount to the group.
It is also worth noting that WDAY currently has a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.18.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 41% echelons of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.