Headquartered in Rochester, New York, Paychex, Inc. (PAYX) is a leading provider of integrated human capital management (HCM) solutions, specializing in payroll, benefits, human resources, and insurance services for small to mid-sized businesses.
With a market capitalization of $52.7 billion, the company has a strong presence across the United States, Europe, and other international markets, offering technology-driven workforce solutions to streamline business operations and compliance. Companies worth $10 billion or more are generally described as "large-cap stocks," Paychex fits this bill perfectly.
Paychex touched its 52-week high of $158.37 on March 10 and is currently trading 8.4% below that peak. PAYX has gained 2.7% over the past three months, outperforming the SPDR S&P Software & Services ETF (XSW), which has dropped 18.3% in the same time frame.
PAYX stock has gained 8.1% over the past six months and 18.2% over the past 52 weeks, underperforming XSW’s 7.1% gains over the past six months and 6.3% returns over the past year.
To confirm the recent uptrend, PAYX has traded above its 200-day moving average since mid-July. Moreover, it has traded over its 50-day moving average since mid-January.
On Dec. 19, PAYX shares gained over 1% following its Q2 earnings release. The company posted an adjusted EPS of $1.14, surpassing Wall Street estimates of $1.12, while revenue came in at $1.32 billion, slightly ahead of the expected $1.31 billion. For FY25, the company expects 4%–5.5% revenue growth and 5%–7% EPS growth, reflecting confidence in its steady expansion.
Paychex has significantly outpaced its peer Workday, Inc.’s (WDAY) 3.8% decline over the past six months and a 10.9% drop over the past 52 weeks.
Among the 16 analysts covering the PAYX stock, the consensus rating is a “Hold.” As of writing, Paychex is trading above its mean price target of $140.08.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
