Paycom Software (PAYC) Declines More Than Market: Some Information for Investors
The latest trading session saw Paycom Software (PAYC) ending at $202.77, denoting a -0.46% adjustment from its last day's close. This change lagged the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
The maker of human-resources and payroll software's stock has climbed by 17.31% in the past month, exceeding the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Paycom Software in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.78, reflecting a 2.89% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $422.54 million, up 14.01% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.64 per share and a revenue of $1.68 billion, signifying shifts of +24.43% and +22.28%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Paycom Software. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.04% higher. Currently, Paycom Software is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Paycom Software is at present trading with a Forward P/E ratio of 26.65. This valuation marks a discount compared to its industry's average Forward P/E of 40.21.
Also, we should mention that PAYC has a PEG ratio of 1.32. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.8.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
