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Paychex, Inc. (PAYX), headquartered in Rochester, New York, is a major player in the payroll and human resources services industry. Specializing in payroll processing, HR, benefits, and insurance services, Paychex serves businesses of all sizes across various sectors. With a substantial market cap of $45.38 billion, Paychex is a leading force in its industry. The company's dedication to innovative solutions and reliable customer service reinforces its position as a key contributor to the business services landscape.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Paychex exemplifies this category with its substantial size, stability, and influence in the payroll and human resources services industry. Paychex remains a crucial player in the market by continually enhancing its range of comprehensive business solutions and driving innovation in payroll processing, HR services, and benefits administration.
Shares of PAYX have dropped 3.6% from their 52-week high of $129.70, which they reached on Jul. 27, 2023. Over the past three months, PAYX's shares have gained 5.1%, underperforming the broader Nasdaq Composite ($NASX), which gained 8.1% during the same period.
In the longer term, PAYX is up 5% YTD, and the shares have gained 15.4% over the past 52 weeks. In comparison, the Nasdaq is up 18% in 2024 and 31.3% over the past year.
However, PAYX has been trading above its 50-day moving average since mid-June and its 200-day moving average since early June.
PAYX reported Q3 earnings on Apr. 2. The company reported a profit of $498.6 million, or $1.38 per share, surpassing Wall Street expectations of $1.36 per share. However, the company posted revenue of $1.44 billion, slightly below the forecasted $1.46 billion. The stock gained marginally on the earnings release day and declined 1.5% the following day.
Rival Automatic Data Processing, Inc. (ADP) has outperformed PAYX, gaining 6.6% on a YTD basis.
Analysts are cautious about PAYX's prospects, given its underperformance compared to NASX. The stock has a consensus rating of "Hold" from 18 analysts in coverage. The mean price target of $120.67 indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari 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.
