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Chicago, IL – May 20, 2025 – Zacks Equity Research shares TaskUs TASK as the Bull of the Day and Boot Barn BOOT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Workday, Inc. WDAY, Salesforce CRM and Nutanix NTNX.
Here is a synopsis of all five stocks:
Providing outsourced digital services, TaskUs is an up-and-coming tech company that investors should consider right now.
Most appealing, TaskUs stock is trading under $20 a share, and the company's diversification makes it a very appealing investment as it relates to the rapid expansion of the outsourced digital services market.
TaskUs serves the crypto, social media, e-commerce, gaming, food delivery, and ride sharing industries, among others, with some of its most notable clients being Coinbase, Meta Platforms, DoorDash and Uber.
As a brief overview, outsourced digital services refer to the practice of hiring external experts or companies to manage and implement digital products or services most commonly including IT support and cloud computing, software development, digital marketing, customer service, and data analytics. As for TaskUs, its digital outsourcing specialties include AI-powered customer support and content moderation.
Furthermore, in the grand scheme of things, the global IT services outsourcing market was valued at over $700 billion in 2024 and is expected to be worth upwards of $1 trillion by 2030, with a projected CAGR of more than 8% during this period. This comes as the COVID-19 pandemic showed the prolific need for digital content in particular, leading to increased demand for outsourcing these specific services.
Going back to its diversity and expansion, TaskUs recently announced a strategic partnership with AI-driven customer support companies Decagon and Regal last Tuesday. The partnerships augment TaskUs' agentic AI consulting practice, a set of business services and expertise that help companies seamlessly integrate advanced AI technologies into their customer experience operations.
To that point, agentic AI can accomplish complex tasks autonomously with minimal human interaction, unlike traditional AI models, as it builds on the rapid progress of generative AI by exhibiting goal-driven behavior, adaptability, and reasoning to solve problems dynamically.
Based on Zacks' estimates, TaskUs' total sales are expected to rise 13% in fiscal 2025 and are projected to increase another 12% in FY26 to $1.26 billion. Plus, annual earnings are expected to be up 7% this year and are projected to spike another 14% in FY26 to $1.57 per share.
It's also noteworthy that FY26 sales projections would represent 163% growth from sales of $478 million during the height of the pandemic in 2020, with TaskUs going public in June of 2021.
While many tech stocks with attractive growth potential (especially as it relates to AI) can usually trade at a stretched premium to the broader market, TASK shares are trading at a very reasonable 12X forward earnings multiple. In comparison, TaskUs' Zacks Computers-IT Services Industry average is at 21.6X forward earnings, with the benchmark S&P 500's average currently at 22.9X.
Notably, TaskUs also trades at less than 2X sales, which can be a rarity for expansive tech companies even in their later stages of corporate life.
Considering its concentration on agentic AI, now appears to be an ideal time to buy TaskUs stock with TASK having an overall "A" VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum. More intriguing, TASK has rebounded and soared over +40% in the last two years but still offers a nearly 30% discount from its IPO price of $23.
With consumer sentiment remaining low, Boot Barn stock may be one to avoid at the moment as a provider of western-style jewelry and accessories, rugged footwear, outerwear, overalls, and denim.
Heeding the broader warning, the University of Michigan's much-noted consumer sentiment index dropped another 2.7% in May to 50.8%, marking the fifth consecutive monthly decline and down 26.5% from 69.1% a year ago.
Meanwhile, Walmart has warned that it won't be able to shelter its customers from higher tariffs, with Boot Barn planning to raise its retail prices as well to the same level as its third-party vendors, in a bid to maintain merchandise margin rate.
Reporting results for its fiscal fourth quarter last Wednesday, Boot Barn came up short of its top and bottom-line expectations. Sales of $453.75 million missed Q4 estimates of $458.18 million despite rising from $388.46 million in the comparative quarter.
Although Q4 EPS of $1.22 was up from $1.01 per share in the prior period, this missed expectations of $1.24. This also marked the second straight quarter that Boot Barn has missed sales estimates, with the company citing the continued uncertainty around tariffs and the resulting impact on consumer spending in its guidance.
On a more subtle but cautious note, it's noteworthy that during Q4, Boot Barn's inventory levels increased 25% year over year to $747 million, rising 5.7% on a same-store basis. Boot Barn attributed the spike in inventory levels to the opening of 21 new stores, growth in exclusive brands, and the proactive pull forward of shipments in anticipation of tariffs.
Notably, Boot Barn plans to open 65-70 new stores in its current fiscal year 2026. However, the timing of such could have an adverse effect, considering the company anticipates an $8 million incremental cost due to tariffs, which is expected to affect consumer demand in the second half of the year.
While Boot Barn has reduced its reliance on Chinese factories to offset the cost of higher tariffs, EPS revisions for its current fiscal year 2026 have dropped 5% in the last week from $6.72 to $6.39. Furthermore, FY26 EPS estimates are now down 7% over the last 30 days, with FY27 EPS projections dropping 8% in the last month from $8.07 to $7.39.
Now appears to be the time to take profits in Boot Barn stock, with BOOT soaring over +140% in the last two years and up a respectable +6% year to date. To that point, Boot Barn stock lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day based on the trend of declining earnings estimate revisions, with the prerequisite of an unfavorable inventory buildup, something to look out for amid the company's expansion.
Workday, Inc.is set to release first-quarter fiscal 2026 results on May 22, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 9.45%, while in the last reported quarter, it delivered an earnings surprise of 9.71%.
Based in Pleasanton, CA, WDAY is expected to have recorded higher revenues on the back of solid demand for its human capital management and financial management solutions across different end markets. A strong focus on AI integration across the portfolio is a positive.
During the quarter, Workday introduced the Workday Agent System of Record, powered by Workday Illuminate, which offers a centralized system for managing enterprises' entire fleet of AI agents. The solution brings numerous benefits for enterprises looking to streamline the use of AI across their operations and unlock the full potential of AI agents.
The company also introduced features such as AI-Powered Talent Rediscovery, Personalized Preboarding and Onboarding Experiences, Document Intelligence, AI-Powered Accounts Payable, Workday Help, Made Easier and more. These innovative features are designed to streamline various business processes, including recruitment, workforce management, finance and more.
In the to-be-reported quarter, Sovereign Network Group, one of the U.K.'s largest housing associations, opted to deploy WDAY solutions to improve operational efficiency, boost employee experience and enhance its ability to serve customers. These factors are likely to have positively impacted Workday's fiscal first-quarter performance.
Our estimate for Subscription Services revenues is pegged at $2.05 billion, suggesting 13% year-over-year growth. Our estimate for Professional Services revenues is pegged at $165 million.
For the April quarter, the Zacks Consensus Estimate for revenues is pegged at $2.22 billion, suggesting an increase from the year-ago quarter's reported figure of $1.99 billion. The consensus estimate for adjusted earnings per share is pegged at $1.99, indicating an increase from $1.74 reported in the prior year.
Our proven model does not conclusively predict an earnings beat for Workday for the fiscal first quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here.
WDAY's Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.99. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
WDAY's Zacks Rank: Workday currently carries a Zacks Rank #3.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Salesforce is set to release quarterly numbers on May 28. It has an Earnings ESP of +0.57% and carries a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Nutanix is scheduled to report quarterly numbers on May 28. It has an Earnings ESP of +5.26% and currently carries a Zacks Rank of 3.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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