Back to top

Image: Bigstock

Paycom Software (PAYC) Stock Moves -0.83%: What You Should Know

Read MoreHide Full Article

Paycom Software (PAYC - Free Report) closed at $325.75 in the latest trading session, marking a -0.83% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.72%. Meanwhile, the Dow lost 1.62%, and the Nasdaq, a tech-heavy index, added 0.09%.

Heading into today, shares of the maker of human-resources and payroll software had lost 12.21% over the past month, lagging the Computer and Technology sector's loss of 11.99% and the S&P 500's loss of 9.09% in that time.

Investors will be hoping for strength from Paycom Software as it approaches its next earnings release. On that day, Paycom Software is projected to report earnings of $1.18 per share, which would represent year-over-year growth of 28.26%. Meanwhile, our latest consensus estimate is calling for revenue of $327.98 million, up 28.02% from the prior-year quarter.

PAYC's full-year Zacks Consensus Estimates are calling for earnings of $5.75 per share and revenue of $1.36 billion. These results would represent year-over-year changes of +28.35% and +28.4%, respectively.

Investors should also note any recent changes to analyst estimates for Paycom Software. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Paycom Software currently has a Zacks Rank of #3 (Hold).

Investors should also note Paycom Software's current valuation metrics, including its Forward P/E ratio of 57.08. This represents a premium compared to its industry's average Forward P/E of 43.59.

Investors should also note that PAYC has a PEG ratio of 2.28 right now. 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. The Internet - Software was holding an average PEG ratio of 2.28 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Paycom Software, Inc. (PAYC) - free report >>

Published in