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Workday (WDAY) Stock Jumps 10.0%: Will It Continue to Soar?

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Workday, Inc. (WDAY - Free Report) shares soared 10% in the last trading session to close at $231.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.4% loss over the past four weeks.

Workday’s diversified product portfolio continues to yield a steady flow of customers. Growing demand for the company’s human capital management and financial management solutions across multiple end markets, healthcare, education and financial services are driving growth. Management is putting a strong focus on integrating advanced AI and ML capabilities. Ongoing cost discipline efforts and improved efficiencies across the company are tailwinds. Workday is also gaining solid market traction in the international market. However, the U.S. Government’s recent decision to suspend higher tariffs for 90 days for most countries except China will reduce uncertainty about its near-term growth prospects in the international market. These factors have instilled investor confidence, which probably drove the share price appreciation.

This maker of human resources software is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of +14.4%. Revenues are expected to be $2.22 billion, up 11.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Workday, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WDAY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Workday is part of the Zacks Internet - Software industry. Getty Images Holdings, Inc. (GETY - Free Report) , another stock in the same industry, closed the last trading session 13.5% higher at $1.60. GETY has returned -33.2% in the past month.

For Getty Images Holdings, Inc., the consensus EPS estimate for the upcoming report has changed -28.6% over the past month to $0.03. This represents a change of +200% from what the company reported a year ago. Getty Images Holdings, Inc. currently has a Zacks Rank of #5 (Strong Sell).


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