Workday (WDAY - Free Report) closed at $142.41 in the latest trading session, marking a -1.74% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.71%. Elsewhere, the Dow lost 2.91%, while the tech-heavy Nasdaq lost 2.21%.
Prior to today's trading, shares of the maker of human resources software had gained 8.89% over the past month. This has outpaced the Computer and Technology sector's loss of 6.7% and the S&P 500's loss of 8.68% in that time.
WDAY will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. The company is expected to report EPS of $0.32, up 14.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $776.59 million, up 33.33% from the year-ago period.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $1.27 per share and revenue of $2.81 billion. These results would represent year-over-year changes of +23.3% and +31.1%, respectively.
Investors should also note any recent changes to analyst estimates for WDAY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 5.95% higher. WDAY is currently a Zacks Rank #3 (Hold).
In terms of valuation, WDAY is currently trading at a Forward P/E ratio of 114.25. This represents a premium compared to its industry's average Forward P/E of 42.68.
Investors should also note that WDAY has a PEG ratio of 3.66 right now. 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 was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.