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Paycom Software (PAYC) closed the most recent trading day at $516.33, moving +1.36% from the previous trading session. This change outpaced the S&P 500’s 0.3% gain on the day.
Coming into today, shares of the maker of human-resources and payroll software had gained 8.84% in the past month. In that same time, the Computer and Technology sector lost 5.35%, while the S&P 500 lost 2.37%.
Investors will be hoping for strength from PAYC as it approaches its next earnings release. In that report, analysts expect PAYC to post earnings of $0.91 per share. This would mark year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $250.37 million, up 27.39% from the year-ago period.
PAYC’s full-year Zacks Consensus Estimates are calling for earnings of $4.41 per share and revenue of $1.04 billion. These results would represent year-over-year changes of +26.36% and +23.31%, respectively.
Investors should also note any recent changes to analyst estimates for PAYC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PAYC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PAYC is currently trading at a Forward P/E ratio of 115.64. This represents a premium compared to its industry’s average Forward P/E of 58.45.
We can also see that PAYC currently has a PEG ratio of 4.63. 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 4.1 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Paycom Software, Inc. (PAYC): Free Stock Analysis Report
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