Workday(US:WDAY) ZACKS·2025-10-01 22:51Core Insights - Workday's stock closed at $232.21, down 3.54% from the previous session, underperforming the S&P 500's gain of 0.34% [1] - Over the past month, Workday's shares increased by 5.17%, while the Computer and Technology sector rose by 8.07% and the S&P 500 by 3.54% [1] Earnings Expectations - Analysts expect Workday to report an EPS of $2.12, reflecting a 12.17% increase year-over-year [2] - Revenue is projected at $2.42 billion, an 11.84% rise from the same quarter last year [2] - For the fiscal year, earnings are estimated at $8.84 per share and revenue at $9.51 billion, indicating increases of 21.1% and 12.63% respectively from the prior year [3] Analyst Estimates and Stock Performance - Changes in analyst estimates for Workday are crucial as they often indicate shifts in near-term business trends [4] - Recent upward adjustments in estimates suggest a favorable outlook on Workday's business health and profitability [4] - The Zacks Rank system, which reflects these estimate changes, currently rates Workday as 1 (Strong Buy) [6] Valuation Metrics - Workday has a Forward P/E ratio of 27.22, which is lower than the industry's Forward P/E of 30.19, indicating a potential discount [7] - The company's PEG ratio stands at 1.28, compared to the Internet - Software industry's average PEG ratio of 2.3 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 59, placing it in the top 24% of over 250 industries [8] - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [8]