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Workday (WDAY) ended the recent trading session at $226.51, demonstrating a +0.79% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.81% for the day. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.
The the stock of maker of human resources software has fallen by 5.26% in the past month, leading the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.
The upcoming earnings release of Workday will be of great interest to investors. On that day, Workday is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 14.37%. Alongside, our most recent consensus estimate is anticipating revenue of $2.22 billion, indicating a 11.34% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.44 per share and a revenue of $9.49 billion, signifying shifts of +15.62% and +12.39%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Workday is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Workday is presently being traded at a Forward P/E ratio of 26.64. Its industry sports an average Forward P/E of 24.57, so one might conclude that Workday is trading at a premium comparatively.
It's also important to note that WDAY currently trades at a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% of all 250+ industries.