Workday (WDAY) closed at $117.86 in the latest trading session, marking a -1.72% move from the prior day. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq added 1.96%.
Coming into today, shares of the maker of human resources software had lost 10.26% in the past month. In that same time, the Computer and Technology sector gained 5.37%, while the S&P 500 gained 3.93%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.49, showcasing a 11.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.52 billion, indicating a 12.37% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.54 per share and a revenue of $10.66 billion, indicating changes of +14.19% and +11.56%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest 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 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Workday currently has a Zacks Rank of #3 (Hold).
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 11.38. This expresses a discount compared to the average Forward P/E of 18.17 of its industry.
It's also important to note that WDAY currently trades at a PEG ratio of 0.56. 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 of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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Workday, Inc. (WDAY): Free Stock Analysis Report
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