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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 $257.46, moving +0.15% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 12.46% over the past month. This has lagged the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Paycom Software as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $411.01 million, up 22.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.70 per share and revenue of $1.72 billion. These totals would mark changes of +25.41% and +24.78%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Paycom Software is currently a Zacks Rank #3 (Hold).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 33.4. For comparison, its industry has an average Forward P/E of 36.56, which means Paycom Software is trading at a discount to the group.
Also, we should mention that PAYC has a PEG ratio of 1.41. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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) Gains But Lags Market: What You Should Know
Paycom Software (PAYC - Free Report) closed the most recent trading day at $257.46, moving +0.15% from the previous trading session. This change lagged the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 0.83%.
Prior to today's trading, shares of the maker of human-resources and payroll software had lost 12.46% over the past month. This has lagged the Computer and Technology sector's loss of 2.71% and the S&P 500's loss of 2.84% in that time.
Investors will be hoping for strength from Paycom Software as it approaches 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%. Our most recent consensus estimate is calling for quarterly revenue of $411.01 million, up 22.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.70 per share and revenue of $1.72 billion. These totals would mark changes of +25.41% and +24.78%, respectively, from last year.
Any recent changes to analyst estimates for Paycom Software should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Paycom Software is currently a Zacks Rank #3 (Hold).
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 33.4. For comparison, its industry has an average Forward P/E of 36.56, which means Paycom Software is trading at a discount to the group.
Also, we should mention that PAYC has a PEG ratio of 1.41. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.