Paycom Software (PAYC) Outpaces Stock Market Gains: What You Should Know
The most recent trading session ended with Paycom Software (PAYC) standing at $195.21, reflecting a +0.84% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.32%.
The maker of human-resources and payroll software's stock has dropped by 5.84% in the past month, falling short of the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61%.
Market participants will be closely following the financial results of Paycom Software in its upcoming release. The company plans to announce its earnings on February 7, 2024. The company is forecasted to report an EPS of $1.78, showcasing a 2.89% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $422.59 million, showing a 14.02% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paycom Software. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Paycom Software is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Paycom Software has a Forward P/E ratio of 23.84 right now. For comparison, its industry has an average Forward P/E of 34.11, which means Paycom Software is trading at a discount to the group.
Meanwhile, PAYC's PEG ratio is currently 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. The Internet - Software industry had an average PEG ratio of 1.76 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
