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Workday (WDAY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Workday (WDAY - Free Report) was down 1.18% at $186.02. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Shares of the maker of human resources software have depreciated by 3.07% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 2.05%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.74, marking a 18.1% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.69 billion, up 10.6% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.12 per share and a revenue of $10.66 billion, indicating changes of +20.48% and +11.58%, respectively, from the former 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 0.04% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 16.92. This expresses a discount compared to the average Forward P/E of 20.7 of its industry.
Investors should also note that WDAY has a PEG ratio of 0.9 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Workday (WDAY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Workday (WDAY - Free Report) was down 1.18% at $186.02. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Shares of the maker of human resources software have depreciated by 3.07% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 2.05%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.74, marking a 18.1% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.69 billion, up 10.6% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.12 per share and a revenue of $10.66 billion, indicating changes of +20.48% and +11.58%, respectively, from the former 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 0.04% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 16.92. This expresses a discount compared to the average Forward P/E of 20.7 of its industry.
Investors should also note that WDAY has a PEG ratio of 0.9 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.