Paycom Software (PAYC - Free Report) closed the most recent trading day at $139.09, moving -1.21% from the previous trading session. This change lagged the S&P 500's 0.55% loss on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.16%.
Heading into today, shares of the maker of human-resources and payroll software had lost 7.46% over the past month, lagging the Computer and Technology sector's loss of 1.81% and the S&P 500's gain of 0.37% in that time.
PAYC will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2018. On that day, PAYC is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 79.31%. Our most recent consensus estimate is calling for quarterly revenue of $130.48 million, up 28.82% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for PAYC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. PAYC is currently a Zacks Rank #3 (Hold).
In terms of valuation, PAYC is currently trading at a Forward P/E ratio of 53.36. This valuation marks a discount compared to its industry's average Forward P/E of 65.8.
It is also worth noting that PAYC currently has a PEG ratio of 2.09. 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. The Internet - Software was holding an average PEG ratio of 4.31 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% 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.
To follow PAYC in the coming trading sessions, be sure to utilize Zacks.com.