Paycom Software (PAYC) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Paycom Software (PAYC) closed at $204.60 in the latest trading session, marking a -1.03% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.57%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.
Shares of the maker of human-resources and payroll software witnessed a gain of 11.02% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.46% and the S&P 500's gain of 4%.
Market participants will be closely following the financial results of Paycom Software in its upcoming release. The company is predicted to post an EPS of $1.78, indicating a 2.89% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $422.54 million, indicating a 14.01% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Paycom Software. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Paycom Software is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 25.46. This signifies a discount in comparison to the average Forward P/E of 35.46 for its industry.
We can also see that PAYC currently has a PEG ratio of 1.26. 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 average PEG ratio for the Internet - Software industry stood at 1.67 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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
