Yahoo Finance Workday (WDAY) Stock Sinks As Market Gains: What You Should Know
Workday (WDAY) closed at $179.60 in the latest trading session, marking a -1.04% move from the prior day. This change lagged the S&P 500's 0.05% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.
Prior to today's trading, shares of the maker of human resources software had lost 7.79% over the past month. This has lagged the Computer and Technology sector's gain of 1.52% and the S&P 500's gain of 1.18% in that time.
Wall Street will be looking for positivity from Workday as it approaches its next earnings report date. This is expected to be May 25, 2023. The company is expected to report EPS of $1.10, up 32.53% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 16.37% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $7.2 billion. These totals would mark changes of +37.64% and +15.82%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.91% higher. Workday is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Workday currently has a Forward P/E ratio of 36.19. Its industry sports an average Forward P/E of 41.41, so we one might conclude that Workday is trading at a discount comparatively.
We can also see that WDAY currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1.59 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 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Workday, Inc. (WDAY) : Free Stock Analysis Report
