Latest news with #PAYX
Business Insider
24-05-2025
- Business
- Business Insider
Paychex (PAYX) Gets a Hold from Jefferies
In a report released today, Samad Samana from Jefferies maintained a Hold rating on Paychex (PAYX – Research Report), with a price target of $250.00. The company's shares closed today at $156.09. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Samana is a 4-star analyst with an average return of 4.6% and a 49.64% success rate. Samana covers the Technology sector, focusing on stocks such as HubSpot, ServiceNow, and Shopify. The word on The Street in general, suggests a Hold analyst consensus rating for Paychex with a $151.57 average price target, implying a -2.90% downside from current levels. In a report released today, TD Cowen also maintained a Hold rating on the stock with a $150.00 price target. PAYX market cap is currently $56.25B and has a P/E ratio of 32.48. Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAYX in relation to earlier this year. Last month, Michael Gioja, the SVP of PAYX sold 31,653.00 shares for a total of $4,893,136.23.
Yahoo
23-05-2025
- Business
- Yahoo
2 Reasons to Avoid PAYX and 1 Stock to Buy Instead
While the broader market has struggled with the S&P 500 down 2.4% since November 2024, Paychex has surged ahead as its stock price has climbed by 7.5% to $156.18 per share. This performance may have investors wondering how to approach the situation. Is now the time to buy Paychex, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it's free. Despite the momentum, we're swiping left on Paychex for now. Here are two reasons why there are better opportunities than PAYX and a stock we'd rather own. A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Paychex's 6.6% annualized revenue growth over the last three years was weak. This fell short of our benchmark for the software sector. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Paychex's revenue to rise by 6.7%, close to its 6.6% annualized growth for the past three years. This projection doesn't excite us and implies its newer products and services will not accelerate its top-line performance yet. Paychex's business quality ultimately falls short of our standards. With its shares outperforming the market lately, the stock trades at 9.7× forward price-to-sales (or $156.18 per share). Investors with a higher risk tolerance might like the company, but we don't really see a big opportunity at the moment. We're fairly confident there are better investments elsewhere. Let us point you toward a top digital advertising platform riding the creator economy. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
09-05-2025
- Business
- Yahoo
Paychex, Inc. (PAYX): A Bull Case Theory
We came across a bullish thesis on Paychex, Inc. (PAYX) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls' thesis on PAYX. Paychex, Inc. (PAYX)'s share was trading at $149.02 as of May 6th. PAYX's trailing and forward P/E were 30.98 and 28.25 respectively according to Yahoo Finance. Paychex (PAYX), a leading HR and payroll solutions provider for over 745,000 businesses, recently increased its quarterly dividend by 10.2% to $1.08 per share, reflecting its robust financial health and continued shareholder focus. This payout, due May 29 to shareholders of record on May 12, underscores the company's consistent cash generation and disciplined capital allocation. In fiscal 2024, Paychex generated $5.28 billion in revenue, marking a 5% year-over-year increase, with $1.69 billion in net income and industry-leading 32% net margins. Operating income reached $2.17 billion, and adjusted EPS climbed 11% to $4.72. The company's $1.9 billion in free cash flow allowed it to return $1.3 billion via dividends and another $169 million through share buybacks. Its financial strength is evident in its top-tier Financial Score of 98/99 and a solid balance sheet with $1.6 billion in cash and investments against modest debt. With stable recurring revenues, high margins, and a shareholder-friendly capital return policy, Paychex remains a cash machine even in a competitive market. The dividend hike further affirms confidence in future growth, supported by strong operating performance and a resilient business model, making PAYX a high-quality, income-generating investment with defensive characteristics. Paychex, Inc. (PAYX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held PAYX at the end of the fourth quarter which was 20 in the previous quarter. While we acknowledge the risk and potential of PAYX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PAYX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-04-2025
- Business
- Yahoo
1 S&P 500 Stock on Our Buy List and 2 to Question
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds. Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that may struggle. Market Cap: $18.53 billion Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC's (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing. Why Does PTC Fall Short? 8% annual revenue growth over the last three years was slower than its software peers Average billings growth of 7% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low At $154.03 per share, PTC trades at 7.3x forward price-to-sales. To fully understand why you should be careful with PTC, check out our full research report (it's free). Market Cap: $51.58 billion One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions. Why Are We Cautious About PAYX? Annual revenue growth of 6.6% over the last three years was well below our standards for the software sector Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 6.8% Paychex is trading at $143.29 per share, or 8.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PAYX. Market Cap: $32.32 billion Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women. Why Are We Backing LULU? Locations open for at least a year are seeing increased demand as same-store sales have averaged 8.1% growth over the past two years Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 58.8% Robust free cash flow margin of 16% gives it many options for capital deployment Lululemon's stock price of $268.20 implies a valuation ratio of 17.4x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
1 S&P 500 Stock on Our Buy List and 2 to Question
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds. Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that may struggle. Market Cap: $18.53 billion Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC's (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing. Why Does PTC Fall Short? 8% annual revenue growth over the last three years was slower than its software peers Average billings growth of 7% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low At $154.03 per share, PTC trades at 7.3x forward price-to-sales. To fully understand why you should be careful with PTC, check out our full research report (it's free). Market Cap: $51.58 billion One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions. Why Are We Cautious About PAYX? Annual revenue growth of 6.6% over the last three years was well below our standards for the software sector Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 6.8% Paychex is trading at $143.29 per share, or 8.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PAYX. Market Cap: $32.32 billion Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women. Why Are We Backing LULU? Locations open for at least a year are seeing increased demand as same-store sales have averaged 8.1% growth over the past two years Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 58.8% Robust free cash flow margin of 16% gives it many options for capital deployment Lululemon's stock price of $268.20 implies a valuation ratio of 17.4x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
