The most recent trading session ended with Workday (WDAY) standing at $234.53, reflecting a +0.43% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.87%.
The the stock of maker of human resources software has fallen by 8.26% in the past month, leading the Computer and Technology sector's loss of 8.94% and undershooting the S&P 500's loss of 5.59%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.99, reflecting a 14.37% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.22 billion, up 11.34% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.44 per share and a revenue of $9.5 billion, signifying shifts of +15.62% and +12.48%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Workday. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.65% increase. Right now, Workday possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 27.67 right now. This signifies a premium in comparison to the average Forward P/E of 26.28 for its industry.
One should further note that WDAY currently holds a PEG ratio of 1.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.01 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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