We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Paycom Software (PAYC - Free Report) closed the most recent trading day at $279.40, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 2.68% over the past month. This has lagged the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from Paycom Software as it approaches its next earnings report date. The company is expected to report EPS of $1.62, up 27.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.70 per share and revenue of $1.72 billion, which would represent changes of +25.41% and +24.78%, respectively, from the prior year.
Investors should also note any 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.1% lower. Paycom Software currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 36.91. For comparison, its industry has an average Forward P/E of 38.77, which means Paycom Software is trading at a discount to the group.
It is also worth noting that PAYC currently has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.66 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 93, putting it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paycom Software (PAYC) Stock Sinks As Market Gains: What You Should Know
Paycom Software (PAYC - Free Report) closed the most recent trading day at $279.40, moving -1.67% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.29%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 2.68% over the past month. This has lagged the Computer and Technology sector's gain of 2.32% and the S&P 500's gain of 0.09% in that time.
Wall Street will be looking for positivity from Paycom Software as it approaches its next earnings report date. The company is expected to report EPS of $1.62, up 27.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.70 per share and revenue of $1.72 billion, which would represent changes of +25.41% and +24.78%, respectively, from the prior year.
Investors should also note any 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.1% lower. Paycom Software currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 36.91. For comparison, its industry has an average Forward P/E of 38.77, which means Paycom Software is trading at a discount to the group.
It is also worth noting that PAYC currently has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.66 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 93, putting it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.