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Workday (WDAY) closed at $258.03 in the latest trading session, marking a -1.52% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.43% for the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.9%.
The the stock of maker of human resources software has risen by 4.19% in the past month, leading the Computer and Technology sector's gain of 2.86% and the S&P 500's loss of 1.98%.
Market participants will be closely following the financial results of Workday in its upcoming release. The company is forecasted to report an EPS of $1.75, showcasing a 11.46% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.18 billion, indicating a 13.42% upward movement from the same quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $7.13 per share and revenue of $8.41 billion. These results would represent year-over-year changes of +22.09% and +15.87%, respectively.
Investors should also note any recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.13% increase. Workday is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Workday currently has a Forward P/E ratio of 36.77. This denotes a premium relative to the industry's average Forward P/E of 32.53.
We can additionally observe that WDAY currently boasts a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.