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Why Workday (WDAY) Dipped More Than Broader Market Today
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In the latest trading session, Workday (WDAY - Free Report) closed at $184.26, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.22%.
The maker of human resources software's shares have seen an increase of 0.14% over the last month, not keeping up with the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.
The upcoming earnings release of Workday will be of great interest to investors. In that report, analysts expect Workday to post earnings of $2.74 per share. This would mark year-over-year growth of 18.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.69 billion, up 10.6% from the year-ago period.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $11.12 per share and revenue of $10.66 billion. These results would represent year-over-year changes of +20.48% and +11.59%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.04% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Workday currently has a Forward P/E ratio of 16.77. This signifies a discount in comparison to the average Forward P/E of 20.09 for its industry.
One should further note that WDAY currently holds a PEG ratio of 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WDAY's industry had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Workday (WDAY) Dipped More Than Broader Market Today
In the latest trading session, Workday (WDAY - Free Report) closed at $184.26, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.22%.
The maker of human resources software's shares have seen an increase of 0.14% over the last month, not keeping up with the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.
The upcoming earnings release of Workday will be of great interest to investors. In that report, analysts expect Workday to post earnings of $2.74 per share. This would mark year-over-year growth of 18.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.69 billion, up 10.6% from the year-ago period.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $11.12 per share and revenue of $10.66 billion. These results would represent year-over-year changes of +20.48% and +11.59%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.04% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Workday currently has a Forward P/E ratio of 16.77. This signifies a discount in comparison to the average Forward P/E of 20.09 for its industry.
One should further note that WDAY currently holds a PEG ratio of 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WDAY's industry had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.