Paycom Software (PAYC) closed at $180.98 in the latest trading session, marking a -0.72% move from the prior day. This change lagged the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.69%.
Heading into today, shares of the maker of human-resources and payroll software had gained 5.16% over the past month, outpacing the Computer and Technology sector's gain of 3.68% and the S&P 500's gain of 1.95% in that time.
Wall Street will be looking for positivity from PAYC as it approaches its next earnings report date. In that report, analysts expect PAYC to post earnings of $1.12 per share. This would mark year-over-year growth of 17.89%. Our most recent consensus estimate is calling for quarterly revenue of $195.57 million, up 27.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.21 per share and revenue of $713 million, which would represent changes of +20.22% and +25.9%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PAYC. These recent revisions tend to reflect the evolving nature of short-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. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PAYC is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PAYC has a Forward P/E ratio of 56.83 right now. This valuation marks a discount compared to its industry's average Forward P/E of 58.17.
Meanwhile, PAYC's PEG ratio is currently 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAYC's industry had an average PEG ratio of 2.93 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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