Why Workday (WDAY) Dipped More Than Broader Market Today
Workday (WDAY) closed the latest trading day at $299.09, indicating a -1.9% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the maker of human resources software had gained 7.64% over the past month, lagging the Computer and Technology sector's gain of 11.35% and outpacing the S&P 500's gain of 5.78% in that time.
Market participants will be closely following the financial results of Workday in its upcoming release. The company plans to announce its earnings on February 26, 2024. The company's upcoming EPS is projected at $1.44, signifying a 45.45% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.91 billion, up 16.12% from the prior-year quarter.
Any recent changes to analyst estimates for Workday should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Workday is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 47.04. This denotes a premium relative to the industry's average Forward P/E of 32.97.
Investors should also note that WDAY has a PEG ratio of 1.77 right now. 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 1.67.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Workday, Inc. (WDAY) : Free Stock Analysis Report
