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Workday (WDAY) Stock Slides as Market Rises: Facts to Know Before You Trade
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Workday (WDAY - Free Report) ended the recent trading session at $211.46, demonstrating a -0.12% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.05%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 1.64%.
Shares of the maker of human resources software have appreciated by 2.13% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.51% and the S&P 500's loss of 2.21%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is predicted to post an EPS of $1.25, indicating a 26.26% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.84 billion, reflecting a 15.33% rise from the equivalent quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $5.58 per share and revenue of $7.22 billion. These results would represent year-over-year changes of +53.3% and +16.14%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Workday boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 37.93. This represents a premium compared to its industry's average Forward P/E of 34.96.
We can also see that WDAY currently has a PEG ratio of 1.41. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.5.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Workday (WDAY) Stock Slides as Market Rises: Facts to Know Before You Trade
Workday (WDAY - Free Report) ended the recent trading session at $211.46, demonstrating a -0.12% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.05%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 1.64%.
Shares of the maker of human resources software have appreciated by 2.13% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.51% and the S&P 500's loss of 2.21%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is predicted to post an EPS of $1.25, indicating a 26.26% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.84 billion, reflecting a 15.33% rise from the equivalent quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $5.58 per share and revenue of $7.22 billion. These results would represent year-over-year changes of +53.3% and +16.14%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Workday boasts a Zacks Rank of #2 (Buy).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 37.93. This represents a premium compared to its industry's average Forward P/E of 34.96.
We can also see that WDAY currently has a PEG ratio of 1.41. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.5.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.