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In the last trading session, Paycom Software (PAYC) closed at $ 512.63, marking a movement of -1.17% from the previous day. This change was smaller than the S&P 500’s 0.37% gain on the day.
Prior to today’s stock market, shares of the human resources and payroll software maker had gained 5.31% in the past month. This topped the computer and tech sector’s 0.04% gain and the S&P 500’s 2.13% gain during this period.
Wall Street will research PAYC positivity as its next earnings report nears. That is expected to be November 2, 2021. The company is expected to post EPS of $ 0.91, up 30% from the previous year quarter. Our most recent consensus estimate projects quarterly revenue of $ 250.37 million, up 27.39% from the previous year.
Zacks’ consensus estimates for PAYC’s full year forecast earnings of $ 4.39 per share and revenue of $ 1.04 billion. These results would represent year-over-year variations of + 25.79% and + 23.31%, respectively.
It’s also important to note the recent changes to analyst estimates for PAYC. These revisions help show the ever-changing nature of short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. 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 Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. In the past 30 days, our consensus EPS forecast has fallen 0.45%. PAYC currently has a Zacks rank of # 3 (Hold).
In terms of valuation, PAYC is currently trading at a forward P / E ratio of 118.08. This valuation marks a premium over its industry’s average forward P / E of 67.49.
Investors should also note that PAYC currently has a PEG ratio of 4.72. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Internet – Software stocks are averaging a PEG ratio of 4.52 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which places it in the lowest 31% of all 250+ industries.
The Zacks Industry Rank includes is ranked from best to worst in terms of the average Zacks Rank of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.
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