Software is eating the world, and virtually no business is left untouched by it. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that make re-ratings harder.
Unfortunately, the rich prices have haunted them over the past six months as the industry was flat while the S&P 500 was up 13%.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
Human capital management software company Dayforce (NYSE:DAY) met Wall Streets revenue expectations in Q3 CY2025, with sales up 9.5% year on year to $481.6 million. Its non-GAAP profit of $0.37 per share was 33.2% below analysts’ consensus estimates.
Dayforce has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 34.6% to $68.96 per share while the index has gained 32.7%.
From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling SaaS companies have led to lofty valuation multiples historically,
but rich prices also make re-ratings harder and place a ceiling on returns -
over the past six months, the industry’s 10.1% gain has lagged the S&P 500 by 6.1 percentage points.
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Dayforce (NYSE:DAY) and its peers.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
Among Monday's developments for cybersecurity stocks, CrowdStrike Holdings' price point was lowered ahead of its earnings report and private equity firm Thoma Bravo acquired Verint Systems. CrowdStrike stock has gained... Read More
