Paycom Software (PAYC) closed on the most recent trading day at $ 417.21, or -0.9% from the previous trading session. This move fell behind the S&P 500’s daily gain by 0.14%. Elsewhere, the Dow Jones gained 0.25%, while the tech-rich Nasdaq lost 0.34%.
As of today, shares of the human resources and payroll software maker had lost 3.77% in the past month, behind the 2.85% gain in the IT and payroll industry. technology and the S&P 500’s 4.32% gain during this period.
Investors are hopeful that Paycom Software will strengthen as the next publication of its results approaches. The company is expected to post EPS of $ 1.08, up 28.57% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 275.78 million, up 24.81% from the previous year’s quarter.
Zacks’ consensus estimates for PAYC’s full year forecast 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.
Any recent changes in analyst estimates for Paycom Software should also be noted by investors. These revisions generally reflect the latest short-term business trends, which can change frequently. 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. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks ranking system has a proven and externally verified outperformance history, with # 1 stocks returning an average of + 25% per year since. 1988. In the past 30 days, our consensus EPS forecast increased 0.06%. Paycom Software currently holds a Zacks rank of 3 (Maintain).
In view of its valuation, Paycom Software has a forward P / E ratio of 94.73. For comparison, its industry has an average forward P / E of 67.29, which means Paycom Software is trading at a premium to the group.
We can also see that PAYC currently has a PEG ratio of 3.79. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Internet – Software stocks are averaging a PEG ratio of 3.57 based on yesterday’s close prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which places it in the lowest 26% of all 250+ industries.
Zacks Industry Rank measures the strength of our 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.
You can find more information on all of these metrics, and more, at Zacks.com.
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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.