Paycom Software (PAYC) Surpasses Market Returns: Some Facts Worth Knowing
The latest trading session saw Paycom Software (PAYC) ending at $195.64, denoting a +1.8% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 0.54%, and the technology-dominated Nasdaq saw an increase of 1.35%.
The the stock of maker of human-resources and payroll software has fallen by 5.8% in the past month, lagging the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64%.
The upcoming earnings release of Paycom Software will be of great interest to investors. The company is predicted to post an EPS of $1.78, indicating a 2.89% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $422.59 million, indicating a 14.02% increase compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for Paycom Software. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Paycom Software currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Paycom Software has a Forward P/E ratio of 23.67 right now. This signifies a discount in comparison to the average Forward P/E of 33.59 for its industry.
It is also worth noting that PAYC currently has a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.72.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
