Back to top

Image: Bigstock

Paycom Software (PAYC) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

The most recent trading session ended with Paycom Software (PAYC - Free Report) standing at $198.28, reflecting a -0.37% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the maker of human-resources and payroll software had gained 7.72% over the past month. This has outpaced the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Paycom Software in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.43, showcasing a 1.22% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $495.86 million, indicating a 9.79% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.65 per share and a revenue of $1.87 billion, demonstrating changes of -1.29% and +10.45%, respectively, from the preceding year.

Any recent changes to analyst estimates for Paycom Software should also be noted by investors. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% increase. Right now, Paycom Software possesses a Zacks Rank of #4 (Sell).

Looking at valuation, Paycom Software is presently trading at a Forward P/E ratio of 26.01. This represents a discount compared to its industry's average Forward P/E of 30.03.

One should further note that PAYC currently holds a PEG ratio of 2.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PAYC's industry had an average PEG ratio of 1.92 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Paycom Software, Inc. (PAYC) - free report >>

Published in