In the latest trading session, Workday (WDAY) closed at $151.24, marking a +0.5% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the maker of human resources software had lost 7.31% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.99% and the S&P 500's loss of 9.09% in that time.
Investors will be hoping for strength from Workday as it approaches its next earnings release. On that day, Workday is projected to report earnings of $0.84 per share, which would represent a year-over-year decline of 23.64%. Meanwhile, our latest consensus estimate is calling for revenue of $1.58 billion, up 19.2% from the prior-year quarter.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $6.21 billion. These results would represent year-over-year changes of -15.04% and +20.75%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.75% higher within the past month. Workday is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 44.4. This valuation marks a premium compared to its industry's average Forward P/E of 43.59.
Investors should also note that WDAY has a PEG ratio of 2.08 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. The Internet - Software industry currently had an average PEG ratio of 2.28 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 90, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Workday, Inc. (WDAY) : Free Stock Analysis Report
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