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Paycom Software (PAYC) Gains But Lags Market: What You Should Know
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Paycom Software (PAYC - Free Report) closed at $524.20 in the latest trading session, marking a +1.52% move from the prior day. This change lagged the S&P 500's 1.71% gain on the day.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 8.7% over the past month. This has outpaced the Computer and Technology sector's loss of 4.5% and the S&P 500's loss of 2.25% in that time.
Investors will be hoping for strength from PAYC as it approaches its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect PAYC to post earnings of $0.91 per share. This would mark year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $250.37 million, up 27.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.41 per share and revenue of $1.04 billion. These totals would mark changes of +26.36% and +23.31%, respectively, from last year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PAYC is currently a Zacks Rank #3 (Hold).
Investors should also note PAYC's current valuation metrics, including its Forward P/E ratio of 117.21. This represents a premium compared to its industry's average Forward P/E of 60.64.
It is also worth noting that PAYC currently has a PEG ratio of 4.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PAYC's industry had an average PEG ratio of 4.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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 PAYC in the coming trading sessions, be sure to utilize Zacks.com.
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Paycom Software (PAYC) Gains But Lags Market: What You Should Know
Paycom Software (PAYC - Free Report) closed at $524.20 in the latest trading session, marking a +1.52% move from the prior day. This change lagged the S&P 500's 1.71% gain on the day.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 8.7% over the past month. This has outpaced the Computer and Technology sector's loss of 4.5% and the S&P 500's loss of 2.25% in that time.
Investors will be hoping for strength from PAYC as it approaches its next earnings release, which is expected to be November 2, 2021. In that report, analysts expect PAYC to post earnings of $0.91 per share. This would mark year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $250.37 million, up 27.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.41 per share and revenue of $1.04 billion. These totals would mark changes of +26.36% and +23.31%, respectively, from last year.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PAYC is currently a Zacks Rank #3 (Hold).
Investors should also note PAYC's current valuation metrics, including its Forward P/E ratio of 117.21. This represents a premium compared to its industry's average Forward P/E of 60.64.
It is also worth noting that PAYC currently has a PEG ratio of 4.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PAYC's industry had an average PEG ratio of 4.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 34% 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 PAYC in the coming trading sessions, be sure to utilize Zacks.com.