Workday (WDAY) closed at $257.93 in the latest trading session, marking a +0.53% move from the prior day. The stock outperformed the S&P 500 index, posting a daily gain of 0.12%. At the same time, the Dow Jones Industrial Average rose 0.34%, while the tech-heavy Nasdaq fell 0.07%.
Shares of the human resources software maker have gained 0.36% over the past month, lagging the Computer Technology sector's 6.14% rise and the S&P 500's 4.99% rise.
Market participants will be closely monitoring Workday's financial results in future releases. The company plans to announce its financial results on May 23, 2024. The company's EPS is expected to be $1.57, representing a year-over-year increase of 19.85%. Our latest consensus estimate is calling for quarterly revenue of $1.97 billion, up 17.16% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $6.59 per share and revenue of $8.39 billion, which would represent changes of +12.84% and +15.59%, respectively, from the prior year.
It is also important for investors to be aware of recent revisions to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate adjustments are directly related to impending stock performance. To benefit from this, we have established the Zacks Rank, a proprietary model that considers these estimate changes and provides an investment rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a remarkable, independent-audited track record of outperformance, which is verified by independent audits, with #1 rated stocks having a strong track record of #1 success since 1988. Generating an average annual return of +25%. Over the past month, the Zacks Consensus EPS estimate has remained stable. Workday currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 38.94. Its industry has an average Forward P/E of 30.86, so one might conclude that Workday is trading at a relative premium.
Additionally, note that WDAY currently has a PEG ratio of 1.71. 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. As of yesterday's market close, the average PEG ratio for the Internet – Software industry was 1.71.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Don't forget to track all of these stock price movement metrics and more with Zacks.com in the coming trading sessions.
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Workday, Inc. (WDAY): Free Stock Analysis Report
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