Workday (WDAY) shares ended the last trading session 9.2% higher at $124.21. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.5% loss over the past four weeks.
The uptrend was largely driven by a strong demand for its human capital and its financial management suite. Workday’s diversified product portfolio continues to generate a steady flow of customers and management highlighted ongoing platform adoption across enterprises. The company also continues to expand its portfolio beyond core human capital management and customizes solutions for industries such as education, the public sector and financial services. This broadening portfolio supports renewals and customer expansion as enterprises aim to consolidate spend, improve workflow efficiency and reduce the number of core systems they manage over time.
This maker of human resources software is expected to post quarterly earnings of $2.62 per share in its upcoming report, which represents a year-over-year change of +18.6%. Revenues are expected to be $2.63 billion, up 12.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Workday, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WDAY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Workday is part of the Zacks Internet - Software industry. Quantum Computing Inc. (QUBT), another stock in the same industry, closed the last trading session 1% higher at $9.18. QUBT has returned -25.7% in the past month.
Quantum Computing Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of +16.7%. Quantum Computing Inc. currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
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