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Paycom Software (PAYC) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Paycom Software (PAYC - Free Report) closed at $307.25, marking a +1.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Heading into today, shares of the maker of human-resources and payroll software had gained 9.46% over the past month, outpacing the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. In that report, analysts expect Paycom Software to post earnings of $2.34 per share. This would mark year-over-year growth of 23.16%. Meanwhile, our latest consensus estimate is calling for revenue of $444.23 million, up 25.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.45 per share and revenue of $1.7 billion. These totals would mark changes of +21.34% and +23.61%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paycom Software is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Paycom Software's current valuation metrics, including its Forward P/E ratio of 40.68. For comparison, its industry has an average Forward P/E of 41.37, which means Paycom Software is trading at a discount to the group.
Meanwhile, PAYC's PEG ratio is currently 1.63. 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. PAYC's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paycom Software (PAYC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Paycom Software (PAYC - Free Report) closed at $307.25, marking a +1.35% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Heading into today, shares of the maker of human-resources and payroll software had gained 9.46% over the past month, outpacing the Computer and Technology sector's gain of 7.45% and the S&P 500's gain of 5.67% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. In that report, analysts expect Paycom Software to post earnings of $2.34 per share. This would mark year-over-year growth of 23.16%. Meanwhile, our latest consensus estimate is calling for revenue of $444.23 million, up 25.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.45 per share and revenue of $1.7 billion. These totals would mark changes of +21.34% and +23.61%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paycom Software is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Paycom Software's current valuation metrics, including its Forward P/E ratio of 40.68. For comparison, its industry has an average Forward P/E of 41.37, which means Paycom Software is trading at a discount to the group.
Meanwhile, PAYC's PEG ratio is currently 1.63. 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. PAYC's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.