In the latest trading session, Paycom Software (PAYC - Free Report) closed at $158.89, marking a -0.01% move from the previous day. This change lagged the S&P 500's 0.04% gain on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 15.3% over the past month. This has outpaced the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 2.16% in that time.
Investors will be hoping for strength from PAYC as it approaches its next earnings release, which is expected to be October 30, 2018. In that report, analysts expect PAYC to post earnings of $0.52 per share. This would mark year-over-year growth of 79.31%. Meanwhile, our latest consensus estimate is calling for revenue of $130.48 million, up 28.82% from the prior-year quarter.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $555.49 million. These results would represent year-over-year changes of +103.08% and +28.27%, respectively.
It is also important to note the recent changes to analyst estimates for PAYC. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.33% higher within the past month. PAYC currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note PAYC's current valuation metrics, including its Forward P/E ratio of 60.3. This represents a discount compared to its industry's average Forward P/E of 70.
We can also see that PAYC currently has a PEG ratio of 2.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PAYC's industry had an average PEG ratio of 4.24 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 97, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.