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Paycom Software (PAYC) Gains As Market Dips: What You Should Know
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Paycom Software (PAYC - Free Report) closed the most recent trading day at $406.82, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the maker of human-resources and payroll software had lost 14.92% over the past month, lagging the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 0.62% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, up 28.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $275.78 million, up 24.81% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.44 per share and revenue of $1.05 billion. These totals would mark changes of +27.22% and +24.36%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 89.86. For comparison, its industry has an average Forward P/E of 60.51, which means Paycom Software is trading at a premium to the group.
Meanwhile, PAYC's PEG ratio is currently 3.59. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.59 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains As Market Dips: What You Should Know
Paycom Software (PAYC - Free Report) closed the most recent trading day at $406.82, moving +1.87% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.48%, and the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the maker of human-resources and payroll software had lost 14.92% over the past month, lagging the Computer and Technology sector's loss of 4.42% and the S&P 500's loss of 0.62% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.08, up 28.57% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $275.78 million, up 24.81% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.44 per share and revenue of $1.05 billion. These totals would mark changes of +27.22% and +24.36%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Paycom Software is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 89.86. For comparison, its industry has an average Forward P/E of 60.51, which means Paycom Software is trading at a premium to the group.
Meanwhile, PAYC's PEG ratio is currently 3.59. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.59 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.