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Paychex (PAYX) earnings: what should you expect?

Royston Roche | 10:49 am ET, 18 Dec 2018

Paychex, Inc. (PAYX) shares are trading at $65.14, up 0.30%. The company is announcing its quarterly earnings results on Wednesday before the market opens. What's driving Paychex stock price? What's PAYX stock price forecast?

Paychex provides payroll, human resource, and insurance services to small and medium-sized businesses. The company has decided to buy an outsourcing firm Oasis for $1.2 billion. Paychex sees the potential for revenue and cost synergies from this transaction.

Investors are showing interest in the company since it an asset-light company. On the other hand, a few bearish investors worry about slowing global economy which could impact the company’s earnings. Last quarter’s revenue rose 8.8% to $862.80 million and earnings per share came at 67 cents compared to 58 cents for the same period last year.

Second-quarter FY19 results will be released before market open on December 19, 2018.  Analysts expect the company to earn 63 cents per share on revenue of $858.80 million. The company beat analysts’ estimates three times in the previous four quarters.

What is the sentiment towards the PAYX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Paychex, Inc. (PAYX) returned +0.24%.

Paychex, Inc. (PAYX) average analyst price target ($73.79) is 8.32% above its current price ($68.12).

For the latest price and information on Paychex, Inc., please visit Finstead and search for "PAYX price" or "PAYX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Is there more upside for Paychex (PAYX)?

Carla Olson | 5:17 am ET, 02 Oct 2018

Paychex, Inc. (PAYX) shares are trading at $73.80. The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving PAYX stock price? What's PAYX stock price forecast?

Paychex provides payroll, human resources, and other related services to mid-sized businesses in the U.S. and Europe.  Lately, the stock has been on a tear; it yielded a 23% return in the past year. 

Investors are bullish on the company because it provides profitable payroll solutions across many industries. On the other hand, some investors worry about the prospect for PAYX because of the company’s decelerating revenue growth. Last quarter’s revenue grew 9% to $871.1 million and earnings per share came at $0.61 compared to $0.54 for the same period last year.

The first-quarter fiscal year 2019 results will be released before market open on October 02, 2018. Analysts expect the company to earn $0.65 per share on revenue of $850.63 million. The company beat analyst revenue estimates in the previous three quarters, with in-line EPS estimates.

What is the sentiment towards the PAYX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is positive. 

Over the last month, Paychex, Inc. (PAYX) returned +3.78%.

Paychex, Inc. (PAYX) average analyst price target ($70.31) is -6.56% below its current price ($75.25).

For the latest price and information on Paychex, Inc., please visit Finstead and search for "PAYX price" or "PAYX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Paychex, Inc. (PAYX) Buy or Sell Stock Guide

Updated at: 1:31 am ET, 25 Dec 2018

The analysis below may be helpful to you if you have any of the following questions about PAYX stock:

  • Is PAYX a buy or a sell?
  • Should I sell or hold PAYX stock today?
  • Is PAYX a good buy / a good investment?
  • What are PAYX analyst opinions, recommendations, ratings?

Here are PAYX stock buy reasons/signals:

1. Paychex's focus on smaller businesses gives it greater pricing power, resulting in better margins.

2. The company can further penetrate its captive customer base through the cross-selling of workers' comp offerings and retirement plans.

3. Paychex has routinely returned more than 80% of its earnings to shareholders in the form of dividends.

4. PAYX stock price ($61.64) is at the 52-week low. Perhaps now is a good time to buy?

5. PAYX quarterly revenue growth was 8.80%, higher than the industry and sector average revenue growth (6.19% and 5.41%, respectively).

6. PAYX profitability is improving. The YoY profit margin change was 1.68pp.

7. PAYX forward dividend yield is 3.32%, higher than the industry (0.54%) and sector (0.56%) forward dividend yields.

8. PAYX average analyst price target ($73.79) is above its current price ($61.64).

Here are PAYX stock sell reasons/signals:

1. The company will not benefit from increasing employment, as the unemployment rate is already low.

2. Paychex has already seen much of the benefit from the Affordable Care Act, and so growth in HR outsourcing will likely slow.

3. The acquisition of Advance Partners is outside the company's core competencies.

4. PAYX Price/Sales ratio is 6.86, and it’s high compared to its industry peers’ P/S ratios.

5. PAYX PEG ratio (P/E adjusted for growth) is 2.88, and it’s high compared to its industry peers’ PEG ratios.

6. PAYX short interest (days to cover the shorts) ratio is 4.12. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on PAYX?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


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