Yahoo Finance Workday (WDAY) Flat As Market Gains: What You Should Know
In the latest market close, Workday (WDAY) reached $223.08, with no movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.
The the stock of maker of human resources software has risen by 4.18% in the past month, lagging the Computer and Technology sector's gain of 8.46% and the S&P 500's gain of 4.44%.
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 $1.63 per share, which would represent year-over-year growth of 13.99%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 15.85% increase compared to the same quarter of the previous year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $6.79 per share and revenue of $8.37 billion. These results would represent year-over-year changes of +16.27% and +15.25%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Workday. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 last 30 days, the Zacks Consensus EPS estimate has moved 3.79% higher. As of now, Workday holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 32.87 right now. This expresses a premium compared to the average Forward P/E of 29.46 of its industry.
One should further note that WDAY currently holds a PEG ratio of 1.75. 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. The Internet - Software was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Workday, Inc. (WDAY) : Free Stock Analysis Report
