Paychex (PAYX, $94.40) beats fiscal Q2 earnings estimates, on client base strength
Human resource and payroll benefits manager Paychex posted fiscal-second-quarter earnings that surpassed analysts’ expectations, thanks to client retention and strengthening client base.
For the quarter ended Nov. 30, the company’s earnings came in at 75 cents a share, compared to 66 cents expected by analysts polled by FactSet. The figure is also higher than the year-ago quarter’s 72 cents a share.
Revenue fell 0.7% year-over-year to $983.7 million, exceeding analysts’ forecast of $954 million.
While the covid-19 pandemic affected the results, strong client retention and our sales performance has resulted in year-over-year growth in the number of clients sold and serviced, as suggested in a statement from President and Chief Executive Martin Mucci.
PAYX's RSI Oscillator climbs 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 Momentum Indicator moved above the 0 level on January 08, 2025. You may want to consider a long position or call options on PAYX as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 341 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 Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 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 .
The Moving Average Convergence Divergence Histogram (MACD) for PAYX turned negative on January 02, 2025. 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 49 similar instances when the indicator turned negative. In of the 49 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 December 27, 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 January 08, 2025. 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
