Workday (WDAY) closed the most recent trading day at $191.18, moving -3.77% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.52%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.32%.
Heading into today, shares of the maker of human resources software had gained 37.23% over the past month, outpacing the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 3.3%.
Analysts and investors alike will be keeping a close eye on the performance of Workday in its upcoming earnings disclosure. The company's earnings report is set to go public on August 27, 2026. The company's upcoming EPS is projected at $2.63, signifying a 19.00% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.63 billion, indicating a 12.18% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.81 per share and a revenue of $10.66 billion, representing changes of +17.12% and +11.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Workday. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.57% higher. Workday is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Workday is at present trading with a Forward P/E ratio of 18.38. This valuation marks a discount compared to its industry average Forward P/E of 21.52.
Investors should also note that WDAY has a PEG ratio of 1.05 right now. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.05.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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