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Paycom Software (PAYC) Dips More Than Broader Markets: What You Should Know

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Paycom Software (PAYC - Free Report) closed the most recent trading day at $415.19, moving -0.6% from the previous trading session. This change lagged the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the maker of human-resources and payroll software had lost 4.87% over the past month, lagging the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 4.82% in that time.

Paycom Software will be looking to display strength as it nears its next earnings release. On that day, Paycom Software is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 28.57%. Meanwhile, our latest consensus estimate is calling for revenue of $275.78 million, up 24.81% from the prior-year quarter.

PAYC's full-year Zacks Consensus Estimates are calling for earnings of $4.44 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +27.22% and +24.36%, respectively.

Investors might also notice recent changes to analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Paycom Software currently has a Forward P/E ratio of 93.99. This valuation marks a premium compared to its industry's average Forward P/E of 63.09.

It is also worth noting that PAYC currently has a PEG ratio of 3.76. 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. PAYC's industry had an average PEG ratio of 3.56 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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