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The most recent trading session ended with Workday (WDAY) standing at $224.87, reflecting a +1.76% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Heading into today, shares of the maker of human resources software had lost 12.59% over the past month, lagging the Computer and Technology sector's loss of 9.93% and the S&P 500's loss of 6.57% in that time.
The upcoming earnings release of Workday will be of great interest to investors. The company's upcoming EPS is projected at $1.99, signifying a 14.37% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 11.34% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.42 per share and a revenue of $9.48 billion, signifying shifts of +15.34% and +12.28%, respectively, from the last year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.9% fall in the Zacks Consensus EPS estimate. Workday is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Workday's current valuation metrics, including its Forward P/E ratio of 26.25. This signifies a premium in comparison to the average Forward P/E of 24.08 for its industry.
Meanwhile, WDAY's PEG ratio is currently 1.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.