In the latest trading session, Workday (WDAY) closed at $259.18, marking a +0.47% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.07%.
Prior to today's trading, shares of the maker of human resources software had gained 14.79% over the past month. This has lagged the Computer and Technology sector's gain of 18.3% and outpaced the S&P 500's gain of 13.74% in that time.
Investors will be eagerly watching for the performance of Workday in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 22, 2025. On that day, Workday is projected to report earnings of $1.99 per share, which would represent year-over-year growth of 14.37%. Alongside, our most recent consensus estimate is anticipating revenue of $2.22 billion, indicating a 11.34% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.41 per share and a revenue of $9.48 billion, signifying shifts of +15.21% and +12.2%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.93% fall in the Zacks Consensus EPS estimate. Workday is currently a Zacks Rank #3 (Hold).
In terms of valuation, Workday is presently being traded at a Forward P/E ratio of 30.67. Its industry sports an average Forward P/E of 28.22, so one might conclude that Workday is trading at a premium comparatively.
It's also important to note that WDAY currently trades at a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.19.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Workday, Inc. (WDAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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