The most recent trading session ended with Workday (WDAY) standing at $248.68, reflecting a +0.84% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.47%. Meanwhile, the Dow gained 1.39%, and the Nasdaq, a tech-heavy index, added 1.51%.

The maker of human resources software's shares have seen an increase of 8.01% over the last month, surpassing the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 0.47%.

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. The company's upcoming EPS is projected at $1.99, signifying a 14.37% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.22 billion, showing a 11.34% escalation compared to the year-ago quarter.

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 take note of any recent adjustments to analyst estimates for Workday. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 1.02% downward. Right now, Workday possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Workday is presently being traded at a Forward P/E ratio of 29.32. This represents a premium compared to its industry's average Forward P/E of 26.11.

Also, we should mention that WDAY has a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 43% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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Workday, Inc. (WDAY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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