Workday (WDAY) closed the most recent trading day at $214.89, moving -0.4% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.5%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.23%.
The maker of human resources software’s shares have seen a decrease of 11.97% over the last month, not keeping up with the Computer and Technology sector’s loss of 0.1% and the S&P 500’s loss of 2.4%.
The investment community will be closely monitoring the performance of Workday in its forthcoming earnings report. In that report, analysts expect Workday to post earnings of $1.40 per share. This would mark year-over-year growth of 41.41%. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 15.33% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.58 per share and revenue of $7.22 billion, which would represent changes of +53.3% and +16.14%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 21.37% increase. Workday is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 38.65 right now. For comparison, its industry has an average Forward P/E of 37.05, which means Workday is trading at a premium to the group.
It’s also important to note that WDAY currently trades at a PEG ratio of 1.44. 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 Internet – Software industry had an average PEG ratio of 1.49 as trading concluded yesterday.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Workday, Inc. (WDAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.