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Dayforce Inc. (DAY), headquartered in Minneapolis, is a major player in the human capital management software industry. With a market cap of $9.51 billion, Dayforce provides comprehensive cloud-based solutions for workforce management, payroll, benefits, and talent management, empowering organizations to streamline operations and enhance employee experiences through advanced technology and data-driven insights.
Companies valued at less than $10 billion are generally considered “mid-cap” stocks and Dayforce fits in this category. Its commitment to enhancing organizational efficiency and improving employee experiences makes Dayforce a leader in the HR technology space.
DAL shares are trading 20.1% below their 52-week high of $74.33, which they hit on Oct. 11, 2023. The stock has gained 21.1% over the past three months, outperforming the Dow Jones Industrial Average Index’s ($DOWI) 8% returns over the same time frame.
In the longer term, DAY is down 10.3% on a YTD basis, and the shares have declined 10.2% over the past 52 weeks. The Dow has gained 12.3% in 2024 and 26.1% over the past year.
DAY has been trading above its 50-day moving average since mid-August, which confirms its bullish trend. However, it has been trading below the 200-day moving average since late March.
Following Dayforce’s Q2 earnings report, the stock surged 10.4% on Jul. 31. Its EPS of $0.48 exceeded the consensus estimate of $0.37. The company’s revenue for the quarter was $423.3 million, surpassing expectations of $417.4 million. Dayforce revised its fiscal 2024 revenue forecast upward, anticipating revenue between $1.74 billion and $1.75 billion.
Highlighting the contrast in performance, rival Paycom Software Inc (PAYC) has underperformed both the stock and DOWI, with a 34.7% decline over the 52 weeks.
Given DAY's recent outperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target is $69.88, suggesting a premium of 16.1% to its current levels.
On the date of publication, Rashmi Kumari 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.
