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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 the most recent trading day at $280.34, moving +0.34% from the previous trading session. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the maker of human-resources and payroll software had lost 3.92% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. On that day, Paycom Software is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 27.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $7.70 per share and revenue of $1.72 billion. These results would represent year-over-year changes of +25.41% and +24.78%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Paycom Software is currently a Zacks Rank #3 (Hold).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 36.29. This valuation marks a discount compared to its industry's average Forward P/E of 37.91.
Meanwhile, PAYC's PEG ratio is currently 1.53. 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 1.63 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 97, putting it in the top 39% 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.
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Paycom Software (PAYC) Gains But Lags Market: What You Should Know
Paycom Software (PAYC - Free Report) closed the most recent trading day at $280.34, moving +0.34% from the previous trading session. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Heading into today, shares of the maker of human-resources and payroll software had lost 3.92% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.
Paycom Software will be looking to display strength as it nears its next earnings release. On that day, Paycom Software is projected to report earnings of $1.62 per share, which would represent year-over-year growth of 27.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $411.01 million, up 22.99% from the year-ago period.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $7.70 per share and revenue of $1.72 billion. These results would represent year-over-year changes of +25.41% and +24.78%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Paycom Software is currently a Zacks Rank #3 (Hold).
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 36.29. This valuation marks a discount compared to its industry's average Forward P/E of 37.91.
Meanwhile, PAYC's PEG ratio is currently 1.53. 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 1.63 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 97, putting it in the top 39% 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.