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Paycom Software (PAYC) Dips More Than Broader Markets: What You Should Know

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Paycom Software (PAYC - Free Report) closed the most recent trading day at $257.16, moving -1.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the maker of human-resources and payroll software had lost 8.04% over the past month. This has lagged the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.

Wall Street will be looking for positivity from Paycom Software as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors should also note any recent changes to analyst estimates for Paycom Software. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paycom Software is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 33.99. This represents a discount compared to its industry's average Forward P/E of 36.51.

Meanwhile, PAYC's PEG ratio is currently 1.43. 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 industry currently had an average PEG ratio of 1.56 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 90, which puts it in the top 36% 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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