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Paychex (PAYX) Shares Rally 10.6% in the Past 6 Months
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Paychex, Inc. (PAYX - Free Report) is being aided by solid liquidity and shareholder-friendly steps.
Paychex puts consistent efforts to reward its shareholders through dividends and share repurchases. The company paid dividends of $1.17 billion, $999.6 million and $908.7 million in fiscal years 2023, 2022 and 2021 respectively. It repurchased shares worth $145.2 million, $155.7 million and $171.9, respectively, in fiscal 2022, 2021 and 2020.
Along with instilling investors’ confidence, such initiatives positively impact earnings per share. This might have aided share price which rose 4.5% in the past year-to-date period.
Paychex’s current ratio (a measure of liquidity) stood at 1.30 at fourth-quarter fiscal 2023 end, higher than 1.25 at the end of the prior-year quarter. A current ratio of more than 1 implies that the company have enough liquid assets to cover its short-term liabilities.
The stock has gained 10.6% in the past six-month period compared with 14.9% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Revenue Expectation
Driven by the above tailwinds, the Zacks Consensus Estimate for fiscal 2024 revenues indicate an increase of 8.4% year over year to $5.34 billion.
Zacks Rank and Stocks to Consider
Paychex currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Business Services sector can consider the following stocks:
Image: Bigstock
Paychex (PAYX) Shares Rally 10.6% in the Past 6 Months
Paychex, Inc. (PAYX - Free Report) is being aided by solid liquidity and shareholder-friendly steps.
Paychex puts consistent efforts to reward its shareholders through dividends and share repurchases. The company paid dividends of $1.17 billion, $999.6 million and $908.7 million in fiscal years 2023, 2022 and 2021 respectively. It repurchased shares worth $145.2 million, $155.7 million and $171.9, respectively, in fiscal 2022, 2021 and 2020.
Along with instilling investors’ confidence, such initiatives positively impact earnings per share. This might have aided share price which rose 4.5% in the past year-to-date period.
Paychex’s current ratio (a measure of liquidity) stood at 1.30 at fourth-quarter fiscal 2023 end, higher than 1.25 at the end of the prior-year quarter. A current ratio of more than 1 implies that the company have enough liquid assets to cover its short-term liabilities.
The stock has gained 10.6% in the past six-month period compared with 14.9% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Revenue Expectation
Driven by the above tailwinds, the Zacks Consensus Estimate for fiscal 2024 revenues indicate an increase of 8.4% year over year to $5.34 billion.
Zacks Rank and Stocks to Consider
Paychex currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Business Services sector can consider the following stocks:
Automatic Data Processing, Inc. (ADP - Free Report) : ADP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADP has an impressive earning surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters by an average of 3.1%.
Broadridge Financial Solutions, Inc. (BR - Free Report) : BR currently carries a Zacks Rank #2.
Revenue for fiscal 2024 is estimated to climb 7.2% year over year to $6.5 billion.