In the latest market close, Workday (WDAY) reached $244.83, with a +0.97% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 1.01%.
Coming into today, shares of the maker of human resources software had lost 2.7% in the past month. In that same time, the Computer and Technology sector gained 5.51%, while the S&P 500 gained 4.31%.
Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. On that day, Workday is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 12.42%. Alongside, our most recent consensus estimate is anticipating revenue of $2.13 billion, indicating a 13.98% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.97 per share and revenue of $8.39 billion, indicating changes of +19.35% and +15.6%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. At present, Workday boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Workday is presently being traded at a Forward P/E ratio of 34.81. Its industry sports an average Forward P/E of 31.73, so one might conclude that Workday is trading at a premium comparatively.
Meanwhile, WDAY's PEG ratio is currently 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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