Paycom Software (PAYC) Outperforms Broader Market: What You Need to Know
The most recent trading session ended with Paycom Software (PAYC) standing at $195.92, reflecting a +1.09% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.76% gain on the day. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 1.12%.
The maker of human-resources and payroll software's stock has dropped by 6.25% in the past month, falling short of the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 2.5%.
Analysts and investors alike will be keeping a close eye on the performance of Paycom Software in its upcoming earnings disclosure. The company's earnings report is set to go public on February 7, 2024. The company is expected to report EPS of $1.78, up 2.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $422.59 million, up 14.02% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 1.13% decrease. Paycom Software is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Paycom Software is currently trading at a Forward P/E ratio of 24.06. This represents a discount compared to its industry's average Forward P/E of 35.19.
It's also important to note that PAYC currently trades at a PEG ratio of 1.33. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
