Yahoo Finance Workday (WDAY) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Workday (WDAY) closed at $211.25, marking a +1.68% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.04% for the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
Prior to today's trading, shares of the maker of human resources software had lost 8.29% over the past month. This has was narrower than the Computer and Technology sector's loss of 13.91% and lagged the S&P 500's loss of 6.74% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's earnings report is set to go public on August 22, 2024. The company's upcoming EPS is projected at $1.63, signifying a 13.99% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.07 billion, indicating a 15.85% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.77 per share and revenue of $8.37 billion, which would represent changes of +15.92% and +15.25%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 0.12% lower. Workday currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 30.68. This represents a premium compared to its industry's average Forward P/E of 30.01.
Meanwhile, WDAY's PEG ratio is currently 1.64. 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. The Internet - Software was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Workday, Inc. (WDAY) : Free Stock Analysis Report
