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Workday (WDAY) Outpaces Stock Market Gains: What You Should Know
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The latest trading session saw Workday (WDAY - Free Report) ending at $235.63, denoting a +1.36% adjustment from its last day's close. This change outpaced the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the maker of human resources software had gained 9.42% over the past month, outpacing the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82% in that time.
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 $1.63, indicating a 13.99% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 15.85% from the prior-year quarter.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $6.77 per share and revenue of $8.37 billion. These results would represent year-over-year changes of +15.92% and +15.25%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Workday presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 34.33 right now. This denotes a premium relative to the industry's average Forward P/E of 29.87.
One should further note that WDAY currently holds a PEG ratio of 1.83. 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 1.75 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Workday (WDAY - Free Report) ending at $235.63, denoting a +1.36% adjustment from its last day's close. This change outpaced the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the maker of human resources software had gained 9.42% over the past month, outpacing the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82% in that time.
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 $1.63, indicating a 13.99% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.07 billion, up 15.85% from the prior-year quarter.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $6.77 per share and revenue of $8.37 billion. These results would represent year-over-year changes of +15.92% and +15.25%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. Workday presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 34.33 right now. This denotes a premium relative to the industry's average Forward P/E of 29.87.
One should further note that WDAY currently holds a PEG ratio of 1.83. 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 1.75 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.