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Paycom Software (PAYC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Paycom Software (PAYC - Free Report) closed at $312.23, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 12.2% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 4.22% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.60, up 26.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $398.19 million, up 25.64% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 40.81. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 40.81.
Also, we should mention that PAYC has a PEG ratio of 1.63. 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. The Internet - Software industry currently had an average PEG ratio of 1.79 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 97, putting it in the top 39% 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.
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Paycom Software (PAYC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Paycom Software (PAYC - Free Report) closed at $312.23, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 12.2% over the past month. This has outpaced the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 4.22% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.60, up 26.98% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $398.19 million, up 25.64% from the prior-year quarter.
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 help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 40.81. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 40.81.
Also, we should mention that PAYC has a PEG ratio of 1.63. 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. The Internet - Software industry currently had an average PEG ratio of 1.79 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 97, putting it in the top 39% 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.