Back to top

Image: Bigstock

Workday (WDAY) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

Workday (WDAY - Free Report) ended the recent trading session at $224.95, demonstrating a -2.54% change from the preceding day's closing price. This change lagged the S&P 500's 0.92% loss on the day. Meanwhile, the Dow experienced a drop of 1.18%, and the technology-dominated Nasdaq saw a decrease of 0.84%.

The stock of maker of human resources software has fallen by 1.46% in the past month, lagging the Computer and Technology sector's gain of 1.64% and the S&P 500's gain of 1.48%.

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 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.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.84 per share and a revenue of $9.51 billion, indicating changes of +21.1% and +12.65%, respectively, from the former 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.79% increase. Workday is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Workday is at present trading with a Forward P/E ratio of 26.1. This signifies a discount in comparison to the average Forward P/E of 28.7 for its industry.

We can additionally observe that WDAY currently boasts a PEG ratio of 1.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.1 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Workday, Inc. (WDAY) - free report >>

Published in