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Here's Why Workday (WDAY) Gained But Lagged the Market Today
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Workday (WDAY - Free Report) closed the most recent trading day at $227.12, moving +0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 2.64%.
Shares of the maker of human resources software have depreciated by 0.12% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 0.44%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company's upcoming EPS is projected at $1.63, signifying a 13.99% increase compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.77 per share and revenue of $8.37 billion, indicating changes of +15.92% and +15.25%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. As of now, Workday holds a Zacks Rank of #3 (Hold).
Looking at valuation, Workday is presently trading at a Forward P/E ratio of 33.44. For comparison, its industry has an average Forward P/E of 31.79, which means Workday is trading at a premium to the group.
It's also important to note that WDAY currently trades at a PEG ratio of 1.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Workday (WDAY) Gained But Lagged the Market Today
Workday (WDAY - Free Report) closed the most recent trading day at $227.12, moving +0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 2.64%.
Shares of the maker of human resources software have depreciated by 0.12% over the course of the past month, outperforming the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 0.44%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company's upcoming EPS is projected at $1.63, signifying a 13.99% increase compared to the same quarter of the previous 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.77 per share and revenue of $8.37 billion, indicating changes of +15.92% and +15.25%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. As of now, Workday holds a Zacks Rank of #3 (Hold).
Looking at valuation, Workday is presently trading at a Forward P/E ratio of 33.44. For comparison, its industry has an average Forward P/E of 31.79, which means Workday is trading at a premium to the group.
It's also important to note that WDAY currently trades at a PEG ratio of 1.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.