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) Suffers a Larger Drop Than the General Market: Key Insights
Read MoreHide Full Article
Paycom Software (PAYC - Free Report) ended the recent trading session at $265.50, demonstrating a -1.02% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.
Heading into today, shares of the maker of human-resources and payroll software had lost 0.09% over the past month, outpacing the Computer and Technology sector's loss of 2.07% and the S&P 500's loss of 3.02% in that time.
The investment community will be closely monitoring the performance of Paycom Software in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2023. The company's earnings per share (EPS) are projected to be $1.62, reflecting a 27.56% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $411.04 million, indicating a 23% increase compared to the same quarter of the previous year.
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 take note of any recent adjustments to analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paycom Software is presently being traded at a Forward P/E ratio of 34.84. This represents a discount compared to its industry's average Forward P/E of 37.04.
It's also important to note that PAYC currently trades at a PEG ratio of 1.47. 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 was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% 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.
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) Suffers a Larger Drop Than the General Market: Key Insights
Paycom Software (PAYC - Free Report) ended the recent trading session at $265.50, demonstrating a -1.02% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.
Heading into today, shares of the maker of human-resources and payroll software had lost 0.09% over the past month, outpacing the Computer and Technology sector's loss of 2.07% and the S&P 500's loss of 3.02% in that time.
The investment community will be closely monitoring the performance of Paycom Software in its forthcoming earnings report. The company is scheduled to release its earnings on October 31, 2023. The company's earnings per share (EPS) are projected to be $1.62, reflecting a 27.56% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $411.04 million, indicating a 23% increase compared to the same quarter of the previous year.
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 take note of any recent adjustments to analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paycom Software is presently being traded at a Forward P/E ratio of 34.84. This represents a discount compared to its industry's average Forward P/E of 37.04.
It's also important to note that PAYC currently trades at a PEG ratio of 1.47. 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 was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.