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Workday (WDAY) Gains As Market Dips: What You Should Know
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In the latest market close, Workday (WDAY - Free Report) reached $223.89, with a +0.24% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 0.71%.
Coming into today, shares of the maker of human resources software had gained 7.67% in the past month. In that same time, the Computer and Technology sector gained 6.52%, while the S&P 500 gained 3.53%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.63, showcasing a 13.99% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.07 billion, reflecting a 15.85% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $8.37 billion, which would represent changes of +16.27% and +15.26%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.55% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 32.91. This valuation marks a premium compared to its industry's average Forward P/E of 30.12.
It's also important to note that WDAY currently trades at a PEG ratio of 1.76. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.74.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Workday (WDAY) Gains As Market Dips: What You Should Know
In the latest market close, Workday (WDAY - Free Report) reached $223.89, with a +0.24% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.41% for the day. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 0.71%.
Coming into today, shares of the maker of human resources software had gained 7.67% in the past month. In that same time, the Computer and Technology sector gained 6.52%, while the S&P 500 gained 3.53%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.63, showcasing a 13.99% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.07 billion, reflecting a 15.85% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.79 per share and revenue of $8.37 billion, which would represent changes of +16.27% and +15.26%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.55% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 32.91. This valuation marks a premium compared to its industry's average Forward P/E of 30.12.
It's also important to note that WDAY currently trades at a PEG ratio of 1.76. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.74.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.