In the latest trading session, Workday (WDAY) closed at $195.20, marking a +2.3% move from the previous day. This move outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
Shares of the maker of human resources software have depreciated by 1.58% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.92%, and the S&P 500's gain of 1.46%.
Market participants will be closely following the financial results of Workday in its upcoming release. On that day, Workday is projected to report earnings of $2.74 per share, which would represent year-over-year growth of 18.1%. Our most recent consensus estimate is calling for quarterly revenue of $2.69 billion, up 10.6% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.13 per share and revenue of $10.66 billion. These totals would mark changes of +20.59% and +11.58%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Currently, Workday is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Workday is presently being traded at a Forward P/E ratio of 17.15. For comparison, its industry has an average Forward P/E of 20.63, which means Workday is trading at a discount to the group.
Also, we should mention that WDAY has a PEG ratio of 0.92. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.22.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Workday, Inc. (WDAY): Free Stock Analysis Report
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