Workday (WDAY) closed the most recent trading day at $226.09, moving +1.88% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.29%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.4%.
Shares of the maker of human resources software have depreciated by 3.89% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.11%, and the S&P 500's gain of 3.25%.
The upcoming earnings release of Workday will be of great interest to investors. The company's earnings report is expected on August 21, 2025. The company is expected to report EPS of $2.09, up 19.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.34 billion, up 12.22% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.7 per share and revenue of $9.5 billion. These totals would mark changes of +19.18% and +12.45%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Right now, Workday possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Workday is currently exchanging hands at a Forward P/E ratio of 25.5. This denotes a discount relative to the industry average Forward P/E of 28.79.
We can also see that WDAY currently has a PEG ratio of 1.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.23 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons 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.
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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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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