Workday (WDAY) Stock Sinks As Market Gains: What You Should Know
Workday (WDAY) closed at $143.68 in the latest trading session, marking a -0.71% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 0.76%.
Heading into today, shares of the maker of human resources software had gained 1% over the past month, outpacing the Computer and Technology sector's gain of 0.87% and lagging the S&P 500's gain of 1.53% in that time.
Wall Street will be looking for positivity from WDAY as it approaches its next earnings report date. This is expected to be December 5, 2018. On that day, WDAY is projected to report earnings of $0.15 per share, which would represent a year-over-year decline of 37.5%. Meanwhile, our latest consensus estimate is calling for revenue of $723.09 million, up 30.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $2.77 billion, which would represent changes of +3.88% and +29.29%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for WDAY. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 45.92% lower. WDAY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, WDAY is currently trading at a Forward P/E ratio of 135.12. This valuation marks a premium compared to its industry's average Forward P/E of 70.69.
Also, we should mention that WDAY has a PEG ratio of 5.06. 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 4.14 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 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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
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