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Paycom Software (PAYC) Gains But Lags Market: What You Should Know
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Paycom Software (PAYC - Free Report) closed at $423.83 in the latest trading session, marking a +0.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the maker of human-resources and payroll software had lost 6.75% in the past month. In that same time, the Computer and Technology sector lost 1.01%, while the S&P 500 gained 0.39%.
Investors will be hoping for strength from Paycom Software as it approaches 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.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $4.44 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +27.22% and +24.36%, respectively.
It is also important to note the recent changes to analyst estimates for Paycom Software. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% 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).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 94.9. For comparison, its industry has an average Forward P/E of 64.26, which means Paycom Software is trading at a premium to the group.
We can also see that PAYC currently has a PEG ratio of 3.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.
To follow PAYC in the coming trading sessions, be sure to utilize Zacks.com.
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Paycom Software (PAYC) Gains But Lags Market: What You Should Know
Paycom Software (PAYC - Free Report) closed at $423.83 in the latest trading session, marking a +0.49% move from the prior day. This move lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the maker of human-resources and payroll software had lost 6.75% in the past month. In that same time, the Computer and Technology sector lost 1.01%, while the S&P 500 gained 0.39%.
Investors will be hoping for strength from Paycom Software as it approaches 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.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $4.44 per share and revenue of $1.05 billion. These results would represent year-over-year changes of +27.22% and +24.36%, respectively.
It is also important to note the recent changes to analyst estimates for Paycom Software. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% 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).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 94.9. For comparison, its industry has an average Forward P/E of 64.26, which means Paycom Software is trading at a premium to the group.
We can also see that PAYC currently has a PEG ratio of 3.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.
To follow PAYC in the coming trading sessions, be sure to utilize Zacks.com.