Workday (WDAY) shares rallied 17.8% in the last trading session to close at $206.45. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.6% gain over the past four weeks.
The uptrend was likely triggered by talks of a possible buyout by private equity firm Silver Lake. Media reports claimed that Silver Lake is mulling to buy Workday as it could help accelerate the latter's AI transition. This, in turn, is expected to amplify its revenues and lead to operating margin expansion.
This maker of human resources software is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of +19%. Revenues are expected to be $2.63 billion, up 12.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Workday, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on WDAY going forward to see if this recent jump can turn into more strength down the road.
Workday is part of the Zacks Internet - Software industry. Salesforce (CRM), another stock in the same industry, closed the last trading session 4.2% higher at $201.37. CRM has returned 15.8% in the past month.
Salesforce's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $3.27. Compared to the company's year-ago EPS, this represents a change of +12.4%. Salesforce currently boasts a Zacks Rank of #3 (Hold).
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.Â
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
Keep it Clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another
person will not be tolerated. Be Truthful. Don't knowingly lie about anyone
or anything. Be Nice. No racism, sexism or any sort of -ism
that is degrading to another person. Be Proactive. Use the 'Report' link on
each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness
accounts, the history behind an article.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.