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Workday (WDAY) Stock Sinks As Market Gains: What You Should Know
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Workday (WDAY - Free Report) closed at $189.09 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Heading into today, shares of the maker of human resources software had gained 0.29% over the past month, lagging the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Workday as it approaches its next earnings report date. In that report, analysts expect Workday to post earnings of $1.11 per share. This would mark year-over-year growth of 33.73%. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 16.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $7.2 billion. These totals would mark changes of +37.64% and +15.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 20.58% higher. Workday is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 38.15 right now. Its industry sports an average Forward P/E of 41.57, so we one might conclude that Workday is trading at a discount comparatively.
It is also worth noting that WDAY currently has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.66 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 71, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Workday (WDAY) Stock Sinks As Market Gains: What You Should Know
Workday (WDAY - Free Report) closed at $189.09 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.
Heading into today, shares of the maker of human resources software had gained 0.29% over the past month, lagging the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Workday as it approaches its next earnings report date. In that report, analysts expect Workday to post earnings of $1.11 per share. This would mark year-over-year growth of 33.73%. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 16.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $7.2 billion. These totals would mark changes of +37.64% and +15.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 20.58% higher. Workday is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 38.15 right now. Its industry sports an average Forward P/E of 41.57, so we one might conclude that Workday is trading at a discount comparatively.
It is also worth noting that WDAY currently has a PEG ratio of 1.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.66 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 71, which puts it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.