Paychex (PAYX, $113.98) beats fiscal Q1 earnings expectations
Paychex, Inc. posted first-quarter fiscal 2022 adjusted earnings of $1.03 per share, which surpassed the Zacks Consensus Estimate by 6.2% . The earnings grew +15.7% from the year-ago quarter.
The payroll solutions company’s revenues rose +11.4% year over year to $1.2 billion, beating expectations by 1.8%.(as reported by Zacks Equity Research).
Revenues from Management Solutions segment were up +12% year over year to $905.5 million. Professional employer organization (“PEO”) and Insurance Solutions revenues rose +8% from the year-ago quarter to $282.8 million.
For fiscal 2023, Paychex lowered its adjusted earnings per share forecast to imply 11-12% growth (vs. prior expectation of 9-10% growth). The company reiterated revenues growth outlook of 7-8%.
PAYX's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for PAYX moved out of oversold territory on December 19, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where PAYX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PAYX advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
PAYX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on PAYX as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
PAYX moved below its 50-day moving average on December 11, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PAYX crossed bearishly below the 50-day moving average on December 16, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PAYX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PAYX entered a downward trend on December 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
