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Paycom Software (PAYC) Declines More Than Market: Some Information for Investors
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In the latest market close, Paycom Software (PAYC - Free Report) reached $190.60, with a -0.35% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.42%.
The maker of human-resources and payroll software's stock has climbed by 6.21% in the past month, exceeding the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.
The upcoming earnings release of Paycom Software will be of great interest to investors. The company is expected to report EPS of $2.43, down 1.22% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $495.86 million, reflecting a 9.79% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.65 per share and revenue of $1.87 billion. These totals would mark changes of -1.29% and +10.45%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.4% decrease. Paycom Software is currently a Zacks Rank #4 (Sell).
Investors should also note Paycom Software's current valuation metrics, including its Forward P/E ratio of 24.99. This expresses a discount compared to the average Forward P/E of 30.57 of its industry.
Investors should also note that PAYC has a PEG ratio of 2.44 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Paycom Software (PAYC) Declines More Than Market: Some Information for Investors
In the latest market close, Paycom Software (PAYC - Free Report) reached $190.60, with a -0.35% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.42%.
The maker of human-resources and payroll software's stock has climbed by 6.21% in the past month, exceeding the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.
The upcoming earnings release of Paycom Software will be of great interest to investors. The company is expected to report EPS of $2.43, down 1.22% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $495.86 million, reflecting a 9.79% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.65 per share and revenue of $1.87 billion. These totals would mark changes of -1.29% and +10.45%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.4% decrease. Paycom Software is currently a Zacks Rank #4 (Sell).
Investors should also note Paycom Software's current valuation metrics, including its Forward P/E ratio of 24.99. This expresses a discount compared to the average Forward P/E of 30.57 of its industry.
Investors should also note that PAYC has a PEG ratio of 2.44 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.