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In the latest trading session, Paycom Software (PAYC) closed at $512.63, marking a -1.17% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day.
Prior to today's trading, shares of the maker of human-resources and payroll software had gained 5.31% over the past month. This has outpaced the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 2.13% in that time.
Wall Street will be looking for positivity from PAYC as it approaches its next earnings report date. This is expected to be November 2, 2021. The company is expected to report EPS of $0.91, up 30% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $250.37 million, up 27.39% from the year-ago period.
PAYC's full-year Zacks Consensus Estimates are calling for earnings of $4.39 per share and revenue of $1.04 billion. These results would represent year-over-year changes of +25.79% and +23.31%, respectively.
It is also important to note the recent changes to analyst estimates for PAYC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% lower. PAYC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, PAYC is currently trading at a Forward P/E ratio of 118.08. This valuation marks a premium compared to its industry's average Forward P/E of 67.49.
Investors should also note that PAYC has a PEG ratio of 4.72 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.52 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
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