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Paycom Software (PAYC) Rises Higher Than Market: Key Facts
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The latest trading session saw Paycom Software (PAYC - Free Report) ending at $261.45, denoting a +1.47% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 0.26% over the past month. This has lagged the Computer and Technology sector's loss of 0.22% and was narrower than the S&P 500's loss of 2.29% in that time.
The investment community will be paying close attention to the earnings performance of Paycom Software in its upcoming release. The company is slated to reveal its earnings on October 31, 2023. It is anticipated that the company will report an EPS of $1.62, marking a 27.56% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $411.04 million, showing a 23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.70 per share and revenue of $1.72 billion, which would represent changes of +25.41% and +24.78%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paycom Software. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Paycom Software is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Paycom Software has a Forward P/E ratio of 33.48 right now. This indicates a discount in contrast to its industry's Forward P/E of 36.48.
It's also important to note that PAYC currently trades at a PEG ratio of 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Paycom Software (PAYC) Rises Higher Than Market: Key Facts
The latest trading session saw Paycom Software (PAYC - Free Report) ending at $261.45, denoting a +1.47% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.93%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 0.26% over the past month. This has lagged the Computer and Technology sector's loss of 0.22% and was narrower than the S&P 500's loss of 2.29% in that time.
The investment community will be paying close attention to the earnings performance of Paycom Software in its upcoming release. The company is slated to reveal its earnings on October 31, 2023. It is anticipated that the company will report an EPS of $1.62, marking a 27.56% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $411.04 million, showing a 23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.70 per share and revenue of $1.72 billion, which would represent changes of +25.41% and +24.78%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paycom Software. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. Paycom Software is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Paycom Software has a Forward P/E ratio of 33.48 right now. This indicates a discount in contrast to its industry's Forward P/E of 36.48.
It's also important to note that PAYC currently trades at a PEG ratio of 1.41. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.