In the last trading session, Paycom Software (PAYC) closed at $189.80, up +0.82% from the previous day. The stock’s change was greater than the S&P 500’s daily loss of 0.29%. Elsewhere, the Dow fell 0.35%, while the tech-heavy Nasdaq slipped 0.3%.
Shares of the HR and payroll software maker lost 0.53% from the previous month, trailing the Computer & Technology sector’s 3.61% gain and the S&P 500’s 4.42% gain.
Investors will be eagerly watching Paycom Software’s performance in its upcoming earnings release. The company is expected to report EPS of $2.43, which represents a year-over-year decrease of 1.22%. Meanwhile, the latest consensus estimate calls for revenue of $495.86 million, indicating an increase of 9.79% compared to the same quarter last year.
Looking at the full year, Zacks Consensus Estimates suggests that analysts expect earnings of $7.65 per share and revenue of $1.87 billion. These totals would mean changes of -1.29% and +10.45% respectively compared to last year.
Investors should also pay attention to any recent analyst estimate changes for Paycom Software. These revisions help demonstrate the ever-changing nature of short-term business trends. As a result, we can interpret positive revisions to estimates as a good sign for the company’s business prospects.
Empirical research shows that these revisions in valuations are directly correlated with future stock price performance. Investors can take advantage of this by using the Zacks Rank. This model takes these assessment changes into account and provides a simple, efficient grading system.
In the range of no. 1 (strong buying) to no. 5 (Strong Sell), the Zacks Rank System has a proven, unaudited track record of outperformance, with the stock’s No. 1 have returned an average of +25% annually since 1988. In the past month, the Zacks Consensus EPS Estimate fell 1.4% lower. Paycom Software currently holds a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Paycom Software currently has a P/E ratio of 24.6. This represents a discount compared to the average Forward P/E of 30.85 for its industry.
We can also see that PAYC currently has a PEG ratio of 2.4. This popular metric is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The Internet Software industry currently had an average PEG ratio of 1.82 as of yesterday’s close.
The Internet software industry is part of the computer and technology sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, with over 250.
The Zacks Industry Rank assesses the strength of our various industry groups by determining the average Zacks Rank of the individual stocks that make up the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Remember to use Zacks.com to track all of these stock performance metrics and others in the upcoming trading sessions.
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Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
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