Workday (WDAY) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, Workday (WDAY) reached $268.41, with a +0.05% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the maker of human resources software witnessed a gain of 0.19% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.44, marking a 45.45% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 16.12% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and a revenue of $7.24 billion, indicating changes of +56.87% and +16.54%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.16% higher. Workday is currently a Zacks Rank #2 (Buy).
Digging into valuation, Workday currently has a Forward P/E ratio of 46.96. This denotes a premium relative to the industry's average Forward P/E of 34.25.
Investors should also note that WDAY has a PEG ratio of 1.77 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% 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.
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
