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Paycom Software (PAYC) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest market close, Paycom Software (PAYC - Free Report) reached $264.97, with a -1.33% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.23%.
The the stock of maker of human-resources and payroll software has fallen by 4.21% in the past month, lagging the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.
The upcoming earnings release of Paycom Software will be of great interest to investors. The company's earnings report is expected on October 31, 2023. In that report, analysts expect Paycom Software to post earnings of $1.62 per share. This would mark 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.70 per share and a revenue of $1.72 billion, representing changes of +25.41% and +24.78%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paycom Software is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 34.88. This signifies a discount in comparison to the average Forward P/E of 37.05 for its industry.
Also, we should mention that PAYC has a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PAYC's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 31% of all industries, numbering over 250.
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) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Paycom Software (PAYC - Free Report) reached $264.97, with a -1.33% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.23%.
The the stock of maker of human-resources and payroll software has fallen by 4.21% in the past month, lagging the Computer and Technology sector's loss of 0.1% and the S&P 500's loss of 2.4%.
The upcoming earnings release of Paycom Software will be of great interest to investors. The company's earnings report is expected on October 31, 2023. In that report, analysts expect Paycom Software to post earnings of $1.62 per share. This would mark 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.70 per share and a revenue of $1.72 billion, representing changes of +25.41% and +24.78%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paycom Software is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 34.88. This signifies a discount in comparison to the average Forward P/E of 37.05 for its industry.
Also, we should mention that PAYC has a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PAYC's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 31% of all industries, numbering over 250.
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.