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Paychex (PAYX) Stock Moves -0.22%: What You Should Know
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Paychex (PAYX - Free Report) closed the most recent trading day at $120.22, moving -0.22% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.17%.
Coming into today, shares of the payroll processor and human-resources services provider had gained 8.11% in the past month. In that same time, the Business Services sector gained 11.98%, while the S&P 500 gained 10.62%.
Paychex will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.97, up 6.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 7.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.21 per share and revenue of $4.97 billion. These totals would mark changes of +11.67% and +7.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Paychex. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paychex is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Paychex has a Forward P/E ratio of 28.64 right now. This represents a premium compared to its industry's average Forward P/E of 14.51.
Meanwhile, PAYX's PEG ratio is currently 3.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Outsourcing stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Outsourcing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PAYX in the coming trading sessions, be sure to utilize Zacks.com.
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Paychex (PAYX) Stock Moves -0.22%: What You Should Know
Paychex (PAYX - Free Report) closed the most recent trading day at $120.22, moving -0.22% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.31%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.17%.
Coming into today, shares of the payroll processor and human-resources services provider had gained 8.11% in the past month. In that same time, the Business Services sector gained 11.98%, while the S&P 500 gained 10.62%.
Paychex will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.97, up 6.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 7.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.21 per share and revenue of $4.97 billion. These totals would mark changes of +11.67% and +7.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Paychex. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paychex is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Paychex has a Forward P/E ratio of 28.64 right now. This represents a premium compared to its industry's average Forward P/E of 14.51.
Meanwhile, PAYX's PEG ratio is currently 3.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Outsourcing stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Outsourcing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PAYX in the coming trading sessions, be sure to utilize Zacks.com.