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Is Dayforce Stock Underperforming the Dow?

Minneapolis, Minnesota-based Dayforce Inc. (DAY) operates as a human capital management software company, offering various cloud-based human resources solutions, including payroll and tax, workforce management, and more. With a market cap of $11.1 billion, Dayforce’s operations span the United States, Canada, and internationally.

Companies worth $10 billion or more are generally described as "large-cap stocks." Dayforce fits right into that category, reflecting its significant presence and influence in the HRM software space.

 

Dayforce touched its 52-week high of $77.52 on Dec. 17, 2024, and is currently trading 10.7% below that peak. Meanwhile, DAY stock prices have inched up 1.2% over the past three months, underperforming the Dow Jones Industrial Average’s ($DOWI4.1% gains during the same time frame.

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Dayforce’s performance has remained grim over the longer term as well. DAY stock prices have dipped 4.7% on a YTD basis and declined 10.6% over the past 52 weeks, compared to the Dow’s 12.6% surge in 2025 and 10.2% returns over the past year.

DAY stock has remained above its 200-day moving average since mid-August, but traded along its flat 50-day moving average in recent weeks, highlighting a consolidation.

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Dayforce’s stock prices observed a marginal uptick in the trading session following the release of its mixed Q3 results on Oct. 29. Driven by growth in recurring services and professional services, the company’s overall revenues for the quarter increased 9.5% year-over-year to $481.6 million, meeting Street’s expectations. However, the company’s net margins got squeezed during the quarter, leading to a 21.3% year-over-year decline in adjusted EPS to $0.37, missing the consensus estimates by 33.9%. Nonetheless, Dayforce’s net operating cash flows declined by a much more modest 3.3% to $193.5 million.

Meanwhile, Dayforce has notably outperformed its peer, Workday, Inc.’s (WDAY16.3% decline in 2025 and 22.3% plunge over the past 52 weeks.

Among the 16 analysts covering the DAY stock, the consensus rating is a “Hold.” As of writing, the stock is trading slightly below its mean price target of $70.


On the date of publication, Aditya Sarawgi 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.

 

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