Workday (WDAY) closed the latest trading day at $259.44, indicating a -0.18% change from the previous session's end. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.
Prior to today's trading, shares of the maker of human resources software had gained 5.32% over the past month. This has outpaced the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 0.97% in that time.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings report is expected on November 26, 2024. On that day, Workday is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 12.42%. In the meantime, our current consensus estimate forecasts the revenue to be $2.13 billion, indicating a 13.98% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.97 per share and revenue of $8.39 billion, which would represent changes of +19.35% and +15.6%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Workday is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 37.31. This indicates a premium in contrast to its industry's Forward P/E of 30.98.
Meanwhile, WDAY's PEG ratio is currently 1.78. 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 average PEG ratio for the Internet - Software industry stood at 2.47 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow WDAY in the coming trading sessions, be sure to utilize Zacks.com.
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