We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Paycom Software (PAYC - Free Report) closed the most recent trading day at $319.91, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the maker of human-resources and payroll software had gained 21.66% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Paycom Software as it approaches its next earnings release. In that report, analysts expect Paycom Software to post earnings of $1.60 per share. This would mark year-over-year growth of 26.98%. Our most recent consensus estimate is calling for quarterly revenue of $398.19 million, up 25.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.69 per share and revenue of $1.71 billion. These totals would mark changes of +25.24% and +24.66%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Paycom Software. 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.
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.
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 1.38% higher within the past month. Paycom Software currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 41.96. This represents a discount compared to its industry's average Forward P/E of 42.1.
It is also worth noting that PAYC currently has a PEG ratio of 1.68. 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 1.71 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 103, which puts it in the top 41% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
Paycom Software (PAYC - Free Report) closed the most recent trading day at $319.91, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Coming into today, shares of the maker of human-resources and payroll software had gained 21.66% in the past month. In that same time, the Computer and Technology sector gained 11.52%, while the S&P 500 gained 6.1%.
Investors will be hoping for strength from Paycom Software as it approaches its next earnings release. In that report, analysts expect Paycom Software to post earnings of $1.60 per share. This would mark year-over-year growth of 26.98%. Our most recent consensus estimate is calling for quarterly revenue of $398.19 million, up 25.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.69 per share and revenue of $1.71 billion. These totals would mark changes of +25.24% and +24.66%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Paycom Software. 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.
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.
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 1.38% higher within the past month. Paycom Software currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 41.96. This represents a discount compared to its industry's average Forward P/E of 42.1.
It is also worth noting that PAYC currently has a PEG ratio of 1.68. 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 1.71 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 103, which puts it in the top 41% 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.