It has been about a month since the last earnings report for Workday (WDAY). Shares have lost about 7.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Workday due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, Workday has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Workday has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Workday is part of the Zacks Internet - Software industry. Over the past month, Altair Engineering (ALTR), a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended December 2024 more than a month ago.

Altair Engineering reported revenues of $192.63 million in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.52 for the same period compares with $0.46 a year ago.

For the current quarter, Altair Engineering is expected to post earnings of $0.48 per share, indicating a change of +20% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Altair Engineering. Also, the stock has a VGM Score of C.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Altair Engineering Inc. (ALTR):Free Stock Analysis Report

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

Zacks Investment Research

View Comments