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Here's Why Workday (WDAY) Gained But Lagged the Market Today
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Workday (WDAY - Free Report) closed at $246.03 in the latest trading session, marking a +0.01% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, lost 0.23%.
The maker of human resources software's stock has dropped by 11.62% in the past month, falling short of the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45%.
The upcoming earnings release of Workday will be of great interest to investors. The company is expected to report EPS of $1.75, up 11.46% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.18 billion, reflecting a 13.42% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.14 per share and a revenue of $8.41 billion, signifying shifts of +22.26% and +15.87%, respectively, from the last year.
Any recent changes to analyst estimates for Workday should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 2.03% rise in the Zacks Consensus EPS estimate. At present, Workday boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 34.47. This represents a premium compared to its industry's average Forward P/E of 27.61.
It's also important to note that WDAY currently trades at a PEG ratio of 1.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.05.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, 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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Here's Why Workday (WDAY) Gained But Lagged the Market Today
Workday (WDAY - Free Report) closed at $246.03 in the latest trading session, marking a +0.01% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, lost 0.23%.
The maker of human resources software's stock has dropped by 11.62% in the past month, falling short of the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45%.
The upcoming earnings release of Workday will be of great interest to investors. The company is expected to report EPS of $1.75, up 11.46% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.18 billion, reflecting a 13.42% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.14 per share and a revenue of $8.41 billion, signifying shifts of +22.26% and +15.87%, respectively, from the last year.
Any recent changes to analyst estimates for Workday should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 2.03% rise in the Zacks Consensus EPS estimate. At present, Workday boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 34.47. This represents a premium compared to its industry's average Forward P/E of 27.61.
It's also important to note that WDAY currently trades at a PEG ratio of 1.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.05.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, 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.