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Workday (WDAY) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Workday (WDAY - Free Report) closed at $227.97 in the latest trading session, marking a +1.24% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.54% for the day. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 2.27%.

Shares of the maker of human resources software witnessed a loss of 3.44% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.22%, and the S&P 500's gain of 0.29%.

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 November 25, 2025. On that day, Workday is projected to report earnings of $2.12 per share, which would represent year-over-year growth of 12.17%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.41 billion, indicating a 11.8% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.84 per share and revenue of $9.51 billion, indicating changes of +21.1% and +16.64%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Workday should also be noted by investors. Recent revisions tend to reflect the latest near-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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Workday is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Workday is holding a Forward P/E ratio of 25.46. This indicates a discount in contrast to its industry's Forward P/E of 29.82.

We can additionally observe that WDAY currently boasts a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.97.

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 is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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