Dayforce Inc. (DAY), headquartered in Minneapolis, Minnesota, functions as a human capital management (HCM) software company, offering cloud-based solutions that integrate various HR functions. With a market cap of $11 billion, the company provides a platform for talent and workforce management, human resources, benefits, and payroll services that facilitate the entire employee lifecycle, from recruitment and onboarding to payroll processing.
Shares of this workplace software giant have underperformed the broader market over the past year. DAY has declined 12.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.5%. In 2025, DAY stock is down 5%, compared to SPX’s 16.5% rise on a YTD basis.
Narrowing the focus, DAY’s underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 8.8% over the past year. Moreover, the ETF’s 17.2% gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.
On Oct. 29, DAY shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.37 fell short of Wall Street expectations of $0.56. The company’s revenue was $481.6 million, matching Wall Street forecasts.
For the current fiscal year, ending in December, analysts expect DAY’s EPS to grow 47.5% to $1.46 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last three quarters while beating the forecast on another occasion.
Among the 16 analysts covering DAY stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
This configuration is less bullish than two months ago, with a “Moderate Buy” rating overall, consisting of four analysts suggesting a “Strong Buy.”
On Nov. 4, Michael Turrin from Wells Fargo & Company (WFC) maintained a “Hold” rating on DAY with a price target of $70, implying a potential upside of 1.5% from current levels.
The mean price target of $70.18 represents a 1.7% premium to DAY’s current price levels. The Street-high price target of $72 suggests an upside potential of 4.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
