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Sarah Patel's Avatar
published in Blogs
Dec 26, 2021

Paychex (PAYX, $134.24) beats Q2 earnings expectations

Paychex second quarter earnings increased +25% from the year-ago quarter to 91 cents, vs. 80 cents expected by analysts polled by FactSet.

Revenue rose +13% to $1.109, compared to the $1.062 billion anticipated by analysts.

Looking ahead, the payroll management company now forecasts 2022 EPS growth of 18%-20% and revenue growth of 10%-11%. That's higher than its September forecast for EPS growth of 12%-14% and revenue growth of 8%. Analysts polled by FactSet had predicted 2022 EPS growth of 13.9% and revenue growth of 8.4%.

Related Ticker: PAYX

PAYX saw its Stochastic Oscillator peaks and leaves the overbought zone

The Stochastic Oscillator for PAYX moved out of overbought territory on May 25, 2023. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 63 similar instances where the indicator exited the overbought zone. In of the 63 cases the stock moved lower. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 30, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PAYX as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for PAYX turned negative on May 31, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .

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.

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 .

Bullish Trend Analysis

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 .

PAYX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

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)

Fear & Greed

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 83, 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PAYX’s price grows at a lower 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 (11.136) is normal, around the industry mean (7.830). P/E Ratio (25.316) is within average values for comparable stocks, (24.939). Projected Growth (PEG Ratio) (2.580) is also within normal values, averaging (1.968). Dividend Yield (0.031) settles around the average of (0.038) among similar stocks. PAYX's P/S Ratio (7.734) is very high in comparison to the industry average of (1.493).

Industry description

Personnel Services comprise companies that provide staffing and human resources management solutions for businesses. Each company might be involved in one or more types of recruitment or employee solutions such as permanent or temporary staffing, career consulting, outsourcing, administrative services and many more. Some personnel services companies cater to large businesses, while some specialize in providing services to small/medium-sized organizations. These specialized services potentially expedite the process of getting the ‘right’ candidates and/or training them to meet the requirements of a business process. Some of the companies also cover other critical areas like internal auditing for a company. Robert Half International Inc., ManpowerGroup Inc. and Insperity, Inc. are examples of companies in the personnel services industry.

Market Cap

The average market capitalization across the Personnel Services Industry is 6.49B. The market cap for tickers in the group ranges from 114K to 86.36B. ADP holds the highest valuation in this group at 86.36B. The lowest valued company is FRSI at 114K.

High and low price notable news

The average weekly price growth across all stocks in the Personnel Services Industry was -2%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was -12%. RCRT experienced the highest price growth at 12%, while FTRS experienced the biggest fall at -23%.

Volume

The average weekly volume growth across all stocks in the Personnel Services Industry was 78%. For the same stocks of the Industry, the average monthly volume growth was 98% and the average quarterly volume growth was 77%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 41
P/E Growth Rating: 56
Price Growth Rating: 58
SMR Rating: 53
Profit Risk Rating: 82
Seasonality Score: 2 (-100 ... +100)
View a ticker or compare two or three
Technical Analysis# Of IndicatorsAvg. Odds
   
   
Show details...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of payroll processing and other human resources services

Industry PersonnelServices

Profile
Fundamentals
Details
Industry
Data Processing Services
Address
911 Panorama Trail South
Phone
+1 585 385-6666
Employees
16000
Web
https://www.paychex.com
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PAYX and

Correlation & Price change

A.I.dvisor indicates that over the last year, PAYX has been closely correlated with ADP. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if PAYX jumps, then ADP could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To PAYX
1D Price
Change %
PAYX100%
-2.16%
ADP - PAYX
88%
Closely correlated
-0.52%
NSP - PAYX
61%
Loosely correlated
+0.30%
RHI - PAYX
58%
Loosely correlated
-2.62%
MAN - PAYX
57%
Loosely correlated
-0.54%
BBSI - PAYX
55%
Loosely correlated
-0.01%
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