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Workday (WDAY) Registers a Bigger Fall Than the Market: Important Facts to Note

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Workday (WDAY - Free Report) closed the most recent trading day at $220.98, moving -3.54% from the previous trading session. This change lagged the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq increased by 0.35%.

The maker of human resources software's stock has dropped by 4.62% in the past month, falling short of the Computer and Technology sector's gain of 3.95% and the S&P 500's gain of 1.21%.

The investment community will be paying close attention to the earnings performance of Workday in its upcoming release. The company is slated to reveal its earnings on August 21, 2025. The company's upcoming EPS is projected at $2.09, signifying a 19.43% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.34 billion, indicating a 12.22% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.7 per share and revenue of $9.5 billion, which would represent changes of +19.18% and +12.45%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Workday. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate has moved 0.05% lower. As of now, Workday holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Workday is holding a Forward P/E ratio of 26.32. This valuation marks a discount compared to its industry average Forward P/E of 28.8.

Meanwhile, WDAY's PEG ratio is currently 1.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% 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.

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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