Paycom Software (PAYC) Suffers a Larger Drop Than the General Market: Key Insights
The latest trading session saw Paycom Software (PAYC) ending at $203.02, denoting a -0.55% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.15%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.09%.
Shares of the maker of human-resources and payroll software witnessed a gain of 7.88% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.19% and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of Paycom Software in its upcoming release. It is anticipated that the company will report an EPS of $1.78, marking a 2.89% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $422.54 million, reflecting a 14.01% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Paycom Software. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Paycom Software is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Paycom Software currently has a Forward P/E ratio of 25.14. This indicates a discount in contrast to its industry's Forward P/E of 34.92.
Investors should also note that PAYC has a PEG ratio of 1.39 right now. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.65.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 12% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
