In the latest trading session, Workday (WDAY) closed at $174.66, marking a -7.65% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.13%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.72%.
Shares of the maker of human resources software witnessed a loss of 11.95% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.88%, and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. On that day, Workday is projected to report earnings of $2.3 per share, which would represent year-over-year growth of 19.79%. Meanwhile, our latest consensus estimate is calling for revenue of $2.52 billion, up 14.11% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.07 per share and a revenue of $9.54 billion, demonstrating changes of +24.25% and +12.99%, respectively, from the preceding 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Workday is currently sporting a Zacks Rank of #2 (Buy).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 20.86. This denotes a discount relative to the industry average Forward P/E of 23.25.
One should further note that WDAY currently holds a PEG ratio of 0.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. WDAY's industry had an average PEG ratio of 1.38 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 80, which puts it in the top 33% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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