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Workday (WDAY) Falls More Steeply Than Broader Market: What Investors Need to Know
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Workday (WDAY - Free Report) closed the latest trading day at $226.30, indicating a -1.61% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the maker of human resources software had gained 7.04% over the past month, outpacing the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42% in that time.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. The company is scheduled to release its earnings on November 28, 2023. The company is forecasted to report an EPS of $1.40, showcasing a 41.41% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 15.33% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.58 per share and revenue of $7.22 billion, indicating changes of +53.3% and +16.14%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Workday is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 41.21. Its industry sports an average Forward P/E of 33.32, so one might conclude that Workday is trading at a premium comparatively.
It is also worth noting that WDAY currently has a PEG ratio of 1.54. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Workday (WDAY) Falls More Steeply Than Broader Market: What Investors Need to Know
Workday (WDAY - Free Report) closed the latest trading day at $226.30, indicating a -1.61% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.08%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Heading into today, shares of the maker of human resources software had gained 7.04% over the past month, outpacing the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42% in that time.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. The company is scheduled to release its earnings on November 28, 2023. The company is forecasted to report an EPS of $1.40, showcasing a 41.41% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 15.33% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.58 per share and revenue of $7.22 billion, indicating changes of +53.3% and +16.14%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Workday is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 41.21. Its industry sports an average Forward P/E of 33.32, so one might conclude that Workday is trading at a premium comparatively.
It is also worth noting that WDAY currently has a PEG ratio of 1.54. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.