Workday (WDAY) Falls More Steeply Than Broader Market: What Investors Need to Know
The most recent trading session ended with Workday (WDAY) standing at $291.73, reflecting a -1.02% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.32%. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.
Prior to today's trading, shares of the maker of human resources software had gained 10.89% over the past month. This has outpaced the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59% in that time.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.44, reflecting a 45.45% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.91 billion, up 16.12% from the year-ago period.
Any recent changes to analyst estimates for Workday should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Workday currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Workday is presently trading at a Forward P/E ratio of 45.47. This denotes a premium relative to the industry's average Forward P/E of 31.21.
One should further note that WDAY currently holds a PEG ratio of 1.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.68 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WDAY in the coming trading sessions, be sure to utilize Zacks.com.
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Workday, Inc. (WDAY) : Free Stock Analysis Report
