Workday (wday) Rises As Market Takes A Dip: Key Facts

In the latest trading session, Workday (WDAY) closed at $261.63, marking a +0.2% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. On the other hand, the Dow registered a loss of 1.01%, and the technology-centric Nasdaq decreased by 0.47%.

Heading into today, shares of the maker of human resources software had gained 3.01% over the past month, outpacing the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6% in that time.

The upcoming earnings release of Workday will be of great interest to investors. The company's earnings report is expected on February 25, 2025. The company is forecasted to report an EPS of $1.75, showcasing a 11.46% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.18 billion, showing a 13.41% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. As of now, Workday holds a Zacks Rank of #4 (Sell).

Looking at valuation, Workday is presently trading at a Forward P/E ratio of 31.47. This valuation marks a premium compared to its industry's average Forward P/E of 30.14.

One should further note that WDAY currently holds a PEG ratio of 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.23 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research