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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) closed at $227.13 in the latest trading session, marking a -0.66% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq gained 0.07%.

The maker of human resources software's shares have seen an increase of 2.27% over the last month, surpassing the Computer and Technology sector's loss of 4.62% and the S&P 500's loss of 0.21%.

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 $1.63, indicating a 13.99% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.07 billion, up 15.85% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $6.77 per share and a revenue of $8.37 billion, demonstrating changes of +15.92% and +15.25%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Workday is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Workday is holding a Forward P/E ratio of 33.76. This represents a premium compared to its industry's average Forward P/E of 31.36.

We can additionally observe that WDAY currently boasts a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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