Workday (WDAY) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest trading session, Workday (WDAY) closed at $246.34, marking a +0.15% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.17%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.03%.
Shares of the maker of human resources software have depreciated by 8.38% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.39% and the S&P 500's gain of 0.17%.
The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is slated to reveal its earnings on May 23, 2024. In that report, analysts expect Workday to post earnings of $1.57 per share. This would mark year-over-year growth of 19.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 17.16% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.59 per share and a revenue of $8.39 billion, signifying shifts of +12.84% and +15.59%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Workday. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Workday possesses a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Workday is currently being traded at a Forward P/E ratio of 37.33. This denotes a premium relative to the industry's average Forward P/E of 30.5.
We can also see that WDAY currently has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Investment Research