Paychex is forming a base showing a 139.57 entry as it gets set to report earnings on Sep. 28. The current formation is a second-stage cup with handle.
Be aware that buying close to when a stock reports is risky. You don't know how the stock will report and how the market will react, and you don't have enough time to build a profit cushion. You can minimize your risk by waiting to see how the company reports and how the market reacts. You can also use an options strategy to limit your potential downside.
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Buying this close to earnings is always risky. Added problem is the depth of the handle in the current pattern.
Earnings News
Paychex posted 13% earnings growth last quarter, while sales growth came in at 11%. Analysts expect earnings-per-share growth of 8% for the quarter, and a 10% gain for the full year.
The company has a 92 Composite Rating and holds the No. 8 rank among its peers in the Commercial Services-Outsourcing industry group. Aramark, Exlservice and Automatic Data Processing are among the top 5 highly rated stocks within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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