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Workday (WDAY) Stock Moves -0.38%: What You Should Know

Workday (WDAY) closed the most recent trading day at $156.26, moving -0.38% from the previous trading session. This move was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the maker of human resources software had lost 4.69% over the past month. This has was narrower than the Computer and Technology sector's loss of 10.31% and the S&P 500's loss of 8.19% in that time.

Investors will be hoping for strength from Workday as it approaches its next earnings release. In that report, analysts expect Workday to post earnings of $0.84 per share. This would mark a year-over-year decline of 23.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, up 19.2% from the year-ago period.

WDAY's full-year Zacks Consensus Estimates are calling for earnings of $3.40 per share and revenue of $6.21 billion. These results would represent year-over-year changes of -14.79% and +20.75%, respectively.

Any recent changes to analyst estimates for Workday should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.53% higher. Workday currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Workday has a Forward P/E ratio of 46.2 right now. This valuation marks a premium compared to its industry's average Forward P/E of 45.49.

Also, we should mention that WDAY has a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.39 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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