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Workday (WDAY) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest trading session, Workday (WDAY - Free Report) closed at $205.46, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 1.18%.
The maker of human resources software's stock has climbed by 10.55% in the past month, exceeding the Computer and Technology sector's loss of 6.18% and the S&P 500's loss of 0.79%.
The upcoming earnings release of Workday will be of great interest to investors. The company is predicted to post an EPS of $2.74, indicating a 18.1% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.69 billion, reflecting a 10.6% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $11.12 per share and a revenue of $10.66 billion, demonstrating changes of +20.48% and +11.58%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 18.75. This valuation marks a discount compared to its industry average Forward P/E of 21.46.
Investors should also note that WDAY has a PEG ratio of 1 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Workday (WDAY) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Workday (WDAY - Free Report) closed at $205.46, marking a -1.46% move from the previous day. This move lagged the S&P 500's daily gain of 0.6%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 1.18%.
The maker of human resources software's stock has climbed by 10.55% in the past month, exceeding the Computer and Technology sector's loss of 6.18% and the S&P 500's loss of 0.79%.
The upcoming earnings release of Workday will be of great interest to investors. The company is predicted to post an EPS of $2.74, indicating a 18.1% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.69 billion, reflecting a 10.6% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $11.12 per share and a revenue of $10.66 billion, demonstrating changes of +20.48% and +11.58%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.17% lower within the past month. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 18.75. This valuation marks a discount compared to its industry average Forward P/E of 21.46.
Investors should also note that WDAY has a PEG ratio of 1 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.