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 in downward trend: price dove below 50-day moving average on May 25, 2023
PAYX moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend. In of 44 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 63 cases where PAYX's Stochastic Oscillator exited the overbought zone, the price fell further within 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 .
PAYX broke above its upper Bollinger Band on May 22, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on PAYX as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PAYX just turned positive on May 10, 2023. Looking at past instances where PAYX's MACD turned positive, the stock continued to rise in of 50 cases over the following month. 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 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 362 cases where PAYX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PAYX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.429) is normal, around the industry mean (7.865). P/E Ratio (25.974) is within average values for comparable stocks, (28.072). Projected Growth (PEG Ratio) (2.650) is also within normal values, averaging (1.980). Dividend Yield (0.030) settles around the average of (0.037) among similar stocks. PAYX's P/S Ratio (7.943) is very high in comparison to the industry average of (1.517).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
