Workday (WDAY) Outperforms Broader Market: What You Need to Know
The latest trading session saw Workday (WDAY) ending at $221.45, denoting a +1.4% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.9%.
Shares of the maker of human resources software have appreciated by 0.29% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.56% and the S&P 500's gain of 1.45%.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings report is expected on November 28, 2023. The company is forecasted to report an EPS of $1.40, showcasing a 41.41% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.84 billion, indicating a 15.33% increase compared to the same quarter of the previous year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $5.58 per share and revenue of $7.22 billion. These results would represent year-over-year changes of +53.3% and +16.14%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Workday. These revisions help to show the ever-changing nature of 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Workday holds a Zacks Rank of #2 (Buy).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 39.12. Its industry sports an average Forward P/E of 34.96, so one might conclude that Workday is trading at a premium comparatively.
We can additionally observe that WDAY currently boasts a PEG ratio of 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.51.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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