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Paycom Software (PAYC) Gains As Market Dips: What You Should Know

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Paycom Software (PAYC - Free Report) closed at $395.24 in the latest trading session, marking a +1.72% move from the prior day. This move outpaced the S&P 500's daily loss of 0.02%.

Coming into today, shares of the maker of human-resources and payroll software had gained 3.91% in the past month. In that same time, the Computer and Technology sector gained 2.65%, while the S&P 500 gained 2.91%.

PAYC will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. In that report, analysts expect PAYC to post earnings of $0.83 per share. This would mark year-over-year growth of 33.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $232.23 million, up 27.89% from the year-ago period.

PAYC's full-year Zacks Consensus Estimates are calling for earnings of $4.24 per share and revenue of $1.02 billion. These results would represent year-over-year changes of +21.49% and +21.01%, respectively.

It is also important to note the recent changes to analyst estimates for PAYC. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PAYC is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, PAYC is holding a Forward P/E ratio of 91.64. For comparison, its industry has an average Forward P/E of 66.04, which means PAYC is trading at a premium to the group.

Meanwhile, PAYC's PEG ratio is currently 3.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.61 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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