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Paychex (PAYX) Stock Moves -0.58%: What You Should Know
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Paychex (PAYX - Free Report) closed at $119.89 in the latest trading session, marking a -0.58% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.74%.
Coming into today, shares of the payroll processor and human-resources services provider had gained 1.41% in the past month. In that same time, the Business Services sector lost 10.04%, while the S&P 500 lost 4.6%.
Wall Street will be looking for positivity from Paychex as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.22 billion, up 9.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.64 per share and revenue of $4.51 billion. These totals would mark changes of +19.74% and +11.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Paychex. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Paychex is currently a Zacks Rank #2 (Buy).
In terms of valuation, Paychex is currently trading at a Forward P/E ratio of 33.17. This represents a premium compared to its industry's average Forward P/E of 15.31.
We can also see that PAYX currently has a PEG ratio of 4.42. 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 Outsourcing was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Outsourcing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Paychex (PAYX) Stock Moves -0.58%: What You Should Know
Paychex (PAYX - Free Report) closed at $119.89 in the latest trading session, marking a -0.58% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.74%.
Coming into today, shares of the payroll processor and human-resources services provider had gained 1.41% in the past month. In that same time, the Business Services sector lost 10.04%, while the S&P 500 lost 4.6%.
Wall Street will be looking for positivity from Paychex as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 8.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.22 billion, up 9.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.64 per share and revenue of $4.51 billion. These totals would mark changes of +19.74% and +11.16%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Paychex. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Paychex is currently a Zacks Rank #2 (Buy).
In terms of valuation, Paychex is currently trading at a Forward P/E ratio of 33.17. This represents a premium compared to its industry's average Forward P/E of 15.31.
We can also see that PAYX currently has a PEG ratio of 4.42. 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 Outsourcing was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Outsourcing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.