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Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
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Paycom Software (PAYC - Free Report) closed at $306.75 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Coming into today, shares of the maker of human-resources and payroll software had gained 11.25% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from Paycom Software as it approaches its next earnings report date. The company is expected to report EPS of $1.60, up 26.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 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 0.65% higher. Paycom Software is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 40.62. Its industry sports an average Forward P/E of 40.68, so we one might conclude that Paycom Software is trading at a discount comparatively.
We can also see that PAYC currently has a PEG ratio of 1.62. 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 industry currently had an average PEG ratio of 1.78 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 104, which puts it in the top 42% 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.
To follow PAYC in the coming trading sessions, be sure to utilize Zacks.com.
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Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
Paycom Software (PAYC - Free Report) closed at $306.75 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
Coming into today, shares of the maker of human-resources and payroll software had gained 11.25% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from Paycom Software as it approaches its next earnings report date. The company is expected to report EPS of $1.60, up 26.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 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 0.65% higher. Paycom Software is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 40.62. Its industry sports an average Forward P/E of 40.68, so we one might conclude that Paycom Software is trading at a discount comparatively.
We can also see that PAYC currently has a PEG ratio of 1.62. 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 industry currently had an average PEG ratio of 1.78 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 104, which puts it in the top 42% 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.
To follow PAYC in the coming trading sessions, be sure to utilize Zacks.com.