Paycom Software (PAYC) Dips More Than Bigger Markets: What You Need to Know
Paycom Software (PAYC) closed on the most recent trading day at $ 415.19, or -0.6% from the previous trading session. This change is smaller than the S&P 500’s 0.26% daily loss. At the same time, the Dow Jones lost 0.16% and the tech-rich Nasdaq lost 0.04%.
As of today dawn, shares of the human resources and payroll software maker had lost 4.87% over the past month, trailing the gain in the IT and tech sector. 2.19% and the 4.82% gain of the S&P 500 during this period.
Paycom Software will look to show some strength as the next release of its results approaches. On that day, Paycom Software is expected to report earnings of $ 1.08 per share, which would represent 28.57% year-over-year growth. Meanwhile, our latest consensus estimate projects revenue of $ 275.78 million, up 24.81% from the previous year’s quarter.
Zacks’ consensus estimates for the full year of PAYC project earnings of $ 4.44 per share and revenue of $ 1.05 billion. These results would represent year-over-year variations of + 27.22% and + 24.36%, respectively.
Investors may also notice recent changes to analyst estimates for Paycom Software. These revisions help show the ever-changing nature of short-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 stock movements close to the team. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks ranking system has a proven and externally verified track record of outperforming, with # 1 stocks returning an average of + 25% per year since. 1988. The Zacks Consensus EPS estimate rose 0.06% over the past month. Paycom Software currently has a Zacks ranking of # 3 (Hold).
Digging into the valuation, Paycom Software currently has a forward P / E ratio of 93.99. This valuation marks a premium over its industry’s average forward P / E of 63.09.
It should also be noted that PAYC currently has a PEG ratio of 3.76. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. PAYC’s industry had an average PEG ratio of 3.56 at yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, placing it in the lowest 27% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock market metrics, and more, over future trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.