Valued at a market cap of $9.6 billion, Dayforce Inc (DAY) is a human capital management (HCM) software company. The company offers a comprehensive cloud-based HCM platform and related services to clients across the United States, Canada, Australia, and other international markets.

Shares of the Minneapolis, Minnesota-based company have underperformed the broader market over the past 52 weeks. DAY has declined 3.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.5%. Moreover, shares of Dayforce are down 17.3% on a YTD basis, compared to SPX’s 1.3% gain.

Focusing more closely, the human resources software provider has lagged behind the Industrial Select Sector SPDR Fund’s (XLI) 14.9% return over the past 52 weeks and a 9.1% YTD gain. 

Despite reporting better-than-expected Q1 2025 adjusted EPS of $0.58 and revenue of $481.8 million, Dayforce shares fell 6.4% on May 7 due to a weaker-than-expected Q2 revenue forecast of $454 million - $460 million. Additionally, the company's February announcement of a 5% workforce reduction signaled internal cost pressures despite top line growth.

For the fiscal year, ending in December 2025, analysts expect DAY’s EPS to grow 50.5% year-over-year to $1.49. The company's earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters while missing on two other occasions.

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”

This configuration is slightly more bullish than three months ago, with nine “Strong Buy” ratings on the stock.

On May 8, Piper Sandler cut Dayforce’s price target to $70 but kept an “Overweight" rating, citing strong Q1 results and long-term growth potential despite a softer Q2 outlook.

As of writing, DAY is trading below the mean price target of $68.88. The Street-high price target of $95 implies a potential upside of 58.2% from the current price levels.