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Paychex (PAYX) Aided by Cash Strength & Investor-Aiding Steps
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Paychex, Inc. (PAYX - Free Report) stock has risen 16% in the past three months, significantly outperforming the 8.2% growth of the industry it belongs to.
Paychex reported mixed fourth-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate while revenues beat the same.
Adjusted earnings of 97 cents per share missed the consensus estimate by 1% but increased 19.8% on a year-over-year basis. Total revenues of $1.23 billion beat the consensus estimate by 0.9% and increased 7.5% year over year. Service revenues of $1.2 billion were up 7% year over year.
Paychex’s current ratio (a measure of liquidity) stood at 1.30 at the end of the quarter, higher than 1.28 at the end of the prior quarter and 1.25 at the end of the prior-year quarter. A current ratio of more than 1 implies that the company has enough liquid assets to cover its short-term liabilities.
PAYX puts consistent efforts to reward its shareholders through dividends. The company paid dividends of $1.2 billion, $999.6 million and $908.7 million, respectively, in fiscal 2023, 2022 and 2021.
Meanwhile, Paychex is seeing an increase in expenses as it continues to invest in sales, marketing, product development and supporting technology. PEO insurance costs, which include workers’ compensation and minimum premium health insurance benefit plans, also add to the company’s expenses. Total expenses increased 7% year over year to $3 billion in 2023.
Avis Budget carries a Zacks Rank #2 (Buy) and a VGM Score of B. The company has a trailing four-quarter earnings surprise of 60.7%, on average. CAR shares have surged 42% in the past three months.
ICF International sports a Zacks Rank #2 and a VGM Score of B. The company has a trailing four-quarter earnings surprise of 7%, on average. ICFI shares have gained 12.6% in the past three months.
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Paychex (PAYX) Aided by Cash Strength & Investor-Aiding Steps
Paychex, Inc. (PAYX - Free Report) stock has risen 16% in the past three months, significantly outperforming the 8.2% growth of the industry it belongs to.
Paychex reported mixed fourth-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimate while revenues beat the same.
Adjusted earnings of 97 cents per share missed the consensus estimate by 1% but increased 19.8% on a year-over-year basis. Total revenues of $1.23 billion beat the consensus estimate by 0.9% and increased 7.5% year over year. Service revenues of $1.2 billion were up 7% year over year.
Paychex, Inc. Price
Paychex, Inc. price | Paychex, Inc. Quote
Paychex’s current ratio (a measure of liquidity) stood at 1.30 at the end of the quarter, higher than 1.28 at the end of the prior quarter and 1.25 at the end of the prior-year quarter. A current ratio of more than 1 implies that the company has enough liquid assets to cover its short-term liabilities.
PAYX puts consistent efforts to reward its shareholders through dividends. The company paid dividends of $1.2 billion, $999.6 million and $908.7 million, respectively, in fiscal 2023, 2022 and 2021.
Meanwhile, Paychex is seeing an increase in expenses as it continues to invest in sales, marketing, product development and supporting technology. PEO insurance costs, which include workers’ compensation and minimum premium health insurance benefit plans, also add to the company’s expenses. Total expenses increased 7% year over year to $3 billion in 2023.
Zacks Rank and Stocks to Consider
Paychex currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget (CAR - Free Report) and ICF International (ICFI - Free Report) .
Avis Budget carries a Zacks Rank #2 (Buy) and a VGM Score of B. The company has a trailing four-quarter earnings surprise of 60.7%, on average. CAR shares have surged 42% in the past three months.
ICF International sports a Zacks Rank #2 and a VGM Score of B. The company has a trailing four-quarter earnings surprise of 7%, on average. ICFI shares have gained 12.6% in the past three months.