Workday (WDAY) closed the most recent trading day at $231.36, moving -2.35% from the previous trading session. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.55%.
Shares of the maker of human resources software witnessed a loss of 1.58% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.92%, and the S&P 500's gain of 3.83%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.12, signifying a 12.17% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.41 billion, showing a 11.8% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.84 per share and a revenue of $9.51 billion, signifying shifts of +21.1% and +12.65%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Workday. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Workday presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 26.79. This signifies a discount in comparison to the average Forward P/E of 30.12 for its industry.
We can additionally observe that WDAY currently boasts a PEG ratio of 1.26. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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