Paychex (PAYX) Stock Rises 12% in Six Months: Here's How
Paychex, Inc. PAYX shares have had an impressive run in the past six months. The stock has gained 12.1%, outperforming 9.9% and 5.8% growth of the industry it belongs to and the Zacks S&P 500 composite, respectively.
What’s Behind the Rally?
Paychex has grown meaningfully over the years by providing industry-leading service and technology solutions to its clients and their employees. The company’s solid business model, diversified products and services, and strategic acquisitions have boosted its top-line growth. Paychex aims to meet clients' HR and payroll needs through a comprehensive and flexible service portfolio.
Paychex, Inc. Price
Paychex, Inc. price | Paychex, Inc. Quote
The company’s revenues have witnessed a five-year (2018-2023) CAGR of 8.2. %. Higher revenues expand margins and increase profitability. Revenues rose 6.6% and operating margin extended 60 basis points year over year in the first quarter of fiscal 2024.
Commitment to shareholder returns makes PAYX a reliable way for investors to compound wealth over the long term. It paid dividends of $1.17 billion, $999.6 million and $908.7 million in fiscal 2023, 2022 and 2021, respectively. It repurchased shares worth $145.2 million, $155.7 million and $171.9 in fiscal 2022, 2021 and 2020, respectively.
Zacks Rank and Stocks to Consider
Paychex currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Business Services sector can consider the following stocks:
Rollins ROL currently carries a Zacks Rank #2 (Buy). For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents per share, indicating year-over-year growth of 17.7%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
FTI Consulting FCN also carries a Zacks Rank of 2. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.
FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
