Workday (WDAY) Gains But Lags Market: What You Should Know
In the latest market close, Workday (WDAY) reached $276.81, with a +0.36% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 0.75%.
The maker of human resources software's stock has dropped by 0.34% in the past month, falling short of the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. In that report, analysts expect Workday to post earnings of $1.44 per share. This would mark year-over-year growth of 45.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.91 billion, up 16.12% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.71 per share and a revenue of $7.24 billion, signifying shifts of +56.87% and +16.54%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.03% higher. Workday is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 48.28 right now. This indicates a premium in contrast to its industry's Forward P/E of 34.02.
Also, we should mention that WDAY has a PEG ratio of 1.82. 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. WDAY's industry had an average PEG ratio of 1.65 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Workday, Inc. (WDAY) : Free Stock Analysis Report
