In the latest trading session, Workday (WDAY) closed at $147.22, marking a +1.69% move from the previous day. This change outpaced the S&P 500's 0.19% loss on the day. On the other hand, the Dow registered a loss of 0.59%, and the technology-centric Nasdaq decreased by 0.05%.
Shares of the maker of human resources software have appreciated by 23.82% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.32%, and the S&P 500's gain of 0.55%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company's earnings per share (EPS) are projected to be $2.62, reflecting a 18.55% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.63 billion, up 12.18% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.75 per share and a revenue of $10.66 billion, demonstrating changes of +16.47% and +11.58%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has remained steady. Currently, Workday is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Workday currently has a Forward P/E ratio of 13.47. This signifies a discount in comparison to the average Forward P/E of 20.12 for its industry.
One should further note that WDAY currently holds a PEG ratio of 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.09.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Workday, Inc. (WDAY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).