Why the Market Dipped But Paycom Software (PAYC) Gained Today
In the latest trading session, Paycom Software (PAYC) closed at $188.25, marking a +0.75% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq lost 0.54%.
Heading into today, shares of the maker of human-resources and payroll software had lost 0.07% over the past month, lagging the Computer and Technology sector's gain of 2.36% and the S&P 500's gain of 3.18% in that time.
The investment community will be paying close attention to the earnings performance of Paycom Software in its upcoming release. The company's earnings per share (EPS) are projected to be $2.43, reflecting a 1.22% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $495.86 million, up 9.79% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.65 per share and a revenue of $1.87 billion, signifying shifts of -1.29% and +10.45%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Paycom Software. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.4% lower within the past month. Paycom Software currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Paycom Software is holding a Forward P/E ratio of 24.42. This signifies a discount in comparison to the average Forward P/E of 30.06 for its industry.
One should further note that PAYC currently holds a PEG ratio of 2.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 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.
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
