Workday (WDAY) closed the most recent trading day at $162.93, moving +2.63% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 2.05% for the day. At the same time, the Dow added 2.54%, and the tech-heavy Nasdaq gained 2.27%.
The maker of human resources software's shares have seen a decrease of 24.32% over the last month, not keeping up with the Computer and Technology sector's loss of 3.67% and the S&P 500's loss of 1.49%.
Market participants will be closely following the financial results of Workday in its upcoming release. The company plans to announce its earnings on February 24, 2026. The company is expected to report EPS of $2.3, up 19.79% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.52 billion, indicating a 14.11% upward movement from the same quarter last year.
WDAY's full-year Zacks Consensus Estimates are calling for earnings of $9.07 per share and revenue of $9.54 billion. These results would represent year-over-year changes of +24.25% and +12.99%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. As of now, Workday holds a Zacks Rank of #2 (Buy).
Looking at valuation, Workday is presently trading at a Forward P/E ratio of 15.02. This valuation marks a discount compared to its industry average Forward P/E of 19.86.
Also, we should mention that WDAY has a PEG ratio of 0.69. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.12.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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