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Paycom Software (PAYC) Stock Slides as Market Rises: Facts to Know Before You Trade
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Paycom Software (PAYC - Free Report) closed the latest trading day at $275, indicating a -0.25% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.58%.
Shares of the maker of human-resources and payroll software witnessed a loss of 3.59% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.93% and the S&P 500's loss of 2.61%.
Market participants will be closely following the financial results of Paycom Software in its upcoming release. The company is predicted to post an EPS of $1.62, indicating a 27.56% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.70 per share and revenue of $1.72 billion. These totals would mark changes of +25.41% and +24.78%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Paycom Software presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 35.81. Its industry sports an average Forward P/E of 37.76, so one might conclude that Paycom Software is trading at a discount comparatively.
Meanwhile, PAYC's PEG ratio is currently 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.51.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Paycom Software (PAYC) Stock Slides as Market Rises: Facts to Know Before You Trade
Paycom Software (PAYC - Free Report) closed the latest trading day at $275, indicating a -0.25% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.52%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.58%.
Shares of the maker of human-resources and payroll software witnessed a loss of 3.59% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.93% and the S&P 500's loss of 2.61%.
Market participants will be closely following the financial results of Paycom Software in its upcoming release. The company is predicted to post an EPS of $1.62, indicating a 27.56% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.70 per share and revenue of $1.72 billion. These totals would mark changes of +25.41% and +24.78%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Paycom Software presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 35.81. Its industry sports an average Forward P/E of 37.76, so one might conclude that Paycom Software is trading at a discount comparatively.
Meanwhile, PAYC's PEG ratio is currently 1.51. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.51.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.