Workday (WDAY - Free Report) closed the most recent trading day at $143.79, moving +1.43% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.18%.
Coming into today, shares of the maker of human resources software had lost 6.71% in the past month. In that same time, the Computer and Technology sector gained 0.35%, while the S&P 500 gained 1.71%.
WDAY will be looking to display strength as it nears its next earnings release, which is expected to be December 5, 2018. In that report, analysts expect WDAY to post earnings of $0.15 per share. This would mark a year-over-year decline of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $723.09 million, up 30.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.07 per share and revenue of $2.77 billion. These totals would mark changes of +3.88% and +29.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for WDAY. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 45.05% lower. WDAY is currently a Zacks Rank #3 (Hold).
Digging into valuation, WDAY currently has a Forward P/E ratio of 132.1. This valuation marks a premium compared to its industry's average Forward P/E of 70.86.
Also, we should mention that WDAY has a PEG ratio of 4.94. 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. The Internet - Software industry currently had an average PEG ratio of 4.08 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 35% of all 250+ industries.
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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.