In the latest market close, Workday (WDAY) reached $236.68, with a -0.14% movement compared to the previous day. This move was narrower than the S&P 500’s daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq decreased by 0.59%.
As of today, the human resources software maker’s stock has gained 13.09% over the past month, outperforming the Computer & Technology sector’s gain of 10.56% and the S&P 500’s gain of 7.87% at that time.
The investment community will be closely monitoring Workday’s performance in its next earnings report. The company is scheduled to release its earnings on November 28, 2023. The company is expected to report EPS of $1.40, indicating a 41.41% upward movement from the corresponding quarter of the previous year. Furthermore, our most recent consensus estimate forecasts revenue of $1.84 billion, indicating a 15.34% upward move from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest that analysts expect earnings of $5.58 per share and revenue of $7.22 billion. These totals would mark changes of + 53.3% and + 16.17%, respectively, from last year.
Investors should also pay attention to some of the latest changes in analyst ratings for Workday. These latter adjustments often reflect the changing dynamics of short-term trading patterns. As such, positive rating revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these rating revisions are directly related to near-term stock moves. To exploit this, we created the Zacks Rank, a quantitative model that incorporates these rating changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable record of outperformance, independently verified, with #1 stocks contributing an average annual return of +25% since 1988. More than the last month, the Zacks Consensus EPS estimate remained stagnant. Workday currently features a Zacks Rank of #2 (Buy).
In the context of valuation, Workday currently trades with a Forward P/E ratio of 42.46. This represents a premium compared to the average Forward P/E of 35.92 for its industry.
It is also important to note that WDAY is currently trading at a PEG ratio of 1.58. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth. Internet – Software stocks, on average, hold a PEG ratio of 1.61 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry has a Zacks Industry Rank of 43, placing it within the top 18% of more than 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.
To follow WDAY in the upcoming trading sessions, be sure to use Zacks.com.
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Workday, Inc. (WDAY): Free Analysis Report
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