Workday (WDAY) closed the latest trading day at $274.71, indicating a +1.31% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.18%.
The maker of human resources software's shares have seen an increase of 19.09% over the last month, surpassing the Computer and Technology sector's gain of 15% and the S&P 500's gain of 9%.
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 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.22 billion, indicating a 11.34% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.41 per share and revenue of $9.48 billion, which would represent changes of +15.21% and +12.2%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Workday. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.93% fall in the Zacks Consensus EPS estimate. Right now, Workday possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Workday is currently trading at a Forward P/E ratio of 32.24. This denotes a premium relative to the industry's average Forward P/E of 28.87.
We can also see that WDAY currently has a PEG ratio of 1.65. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.28.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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