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Earnings Estimates Moving Higher for Paycor HCM, Inc. (PYCR): Time to Buy?

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Paycor HCM, Inc. (PYCR - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Paycor HCM, Inc. Strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The earnings estimate of $0.09 per share for the current quarter represents a change of +12.5% from the number reported a year ago.

Over the last 30 days, one estimate has moved higher for Paycor HCM, Inc. while two have gone lower. As a result, the Zacks Consensus Estimate has increased 206.25%.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $0.46 per share represents a change of +21.05% from the year-ago number.

The revisions trend for the current year also appears quite promising for Paycor HCM, Inc. with seven estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 67.44%.

Favorable Zacks Rank

The promising estimate revisions have helped Paycor HCM, Inc. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Paycor HCM, Inc. shares have added 12.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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