Paychex Rises In Buy Range With Earnings On Tap – Investor's Business Daily

This post was originally published on this site

Payroll services provider Paychex (PAYX) easily beat second-quarter views and hiked guidance. Paychex stock rose near a buy point.


Paychex Earnings

Estimates: On a per-share basis, Wall Street expected Paychex earnings to rise 9% to 80 cents, according to FactSet. Revenue was seen climbing 8% to $1.062 billion.

Results: Paychex earnings actually increased 25% to 91 cents. Revenue rose 13% to $1.109 billion.

“Trends that emerged during the pandemic continue unabated,” CEO Martin Mucci said in a release. Those trends include the demand for human resource advice and for benefits packages, he added.

Outlook: Paychex now forecasts 2022 EPS growth of 18%-20% and revenue growth of 10%-11%. That’s up from a September forecast for EPS growth of 12%-14% and revenue growth of 8%. Ahead of Q2 results, analysts had predicted 2022 EPS growth of 13.9% and revenue growth of 8.4%, FactSet says.

Stocks Rebound On Omicron Headlines; What To Do Now

Paychex Stock

Shares gained 3.9% to 131.31 early on the stock market today. They rose 2.1% to 126.43 Tuesday. Paychex stock is in buy range from a rebound off the 10-week line, which offered a 122.56 buy point. The buy range goes to 134.82. The relative strength line for PAYX stock is rising again, near highs, according to MarketSmith chart analysis.

On a strong day for payroll stocks Tuesday, ADP (ADP) gained 1.1%, while Paycor (PYCR) surged 4.5%. Workday (WDAY) rose 04% and Paycom (PAYC) jumped 4.1%. But early Wednesday, ADP fell 0.4%. Workday dropped 1.2%. Paycom dipped 0.7%, and Paycor was not active.

The U.S. economy added 210,000 jobs in November, a positive signal for payroll stocks before the discovery of omicron. Now, the new, fast-spreading coronavirus variant threatens to derail the economic recovery from the pandemic.

Paychex, provider of payroll and human capital management solutions, benefited earlier this year as pandemic headwinds eased. Many companies reopened for business, or ramped up hiring in anticipation of economic recovery.

Meanwhile, the pandemic accelerated the digital transformation of the workplace. Companies are digitizing broader portions of their business models, and using technology more than ever to hire employees.

A rising client base drove Paychex’s growth. The company also boasts strong customer retention. Paychex stock has a 35.2% gain since the start of the year.


Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks% to % to

This post was originally published on *this site*