Workday's 134th Market Activity Rank and Technical Support Fuel 166% High-Volume Strategy Gains

Workday (WDAY) closed August 5 at $224.98, down 0.06% with a trading volume of $0.76 billion, ranking 134th in market activity. Despite broader market weakness, the stock brushed off its 100-day moving average, signaling potential technical support. Analysts highlight its historical August performance, averaging an 8% monthly gain and closing higher 80% of the time over the past decade. The Schaeffer’s put/call open interest ratio (SOIR) of 1.75, in the 97th percentile, suggests elevated short-term bearish positioning, while the Schaeffer’s Volatility Index (SVI) of 29% indicates relatively low premium costs for options strategies.

Long-term fundamentals show a 12.5% year-to-date decline, lagging the S&P 500’s 2.25% gain. However, earnings expectations for the current quarter are optimistic, with an estimated $2.09 EPS, up 19.43% year-over-year. The Zacks Rank system assigns a "Hold" rating, reflecting mixed analyst sentiment. Valuation metrics favor WDAY, with a forward P/E of 26.35—below the industry average of 28.71—and a PEG ratio of 1.4, suggesting potential undervaluation relative to growth prospects. Key events include Q2 2026 earnings on August 21 and a financial analyst day on September 16.

A backtested strategy purchasing top 500 high-volume stocks and holding for one day generated a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. This underscores liquidity-driven approaches’ efficacy in volatile markets, with high-volume names like WDAY potentially benefiting from sustained investor interest and short-term price momentum.