Paychex is FAIRLY VALUED at 94.11 per share with modest projections ahead. Macroaxis provides advice on Paychex to complement and cross-verify current
analyst consensus on Paychex. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
What is the right price you would pay to acquire a share of Paychex? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Paychex this year
Annual and quarterly reports issued by Paychex are formal
financial statements that are published yearly and quarterly and sent to Paychex stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Paychex often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Paychex Gross Profit
Paychex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Paychex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Paychex Gross Profit growth over the last 10 years. Please check Paychex's
gross profit and other
fundamental indicators for more details.
Details
Earning per share calculations of Paychex is based on official Zacks consensus of 10 analysts regarding Paychex's future annual earnings. Given the historical accuracy of 95.74%, the future earnings per share of the company is estimated to be 2.8262 with the lowest and highest values of 2.79 and 2.9, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Paychex a risky opportunity?
Let's check the volatility. Paychex is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Paychex (NASDAQ:PAYX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Paychex stock makes you a part-owner of that company.
Paychex Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Paychex. The Paychex consensus assessment is calculated by taking the average estimates from all of the analysts covering Paychex
| Strong Buy1 | Hold11 | Sell1 | Strong Sell1 |
| Strong Buy | 1 | 7.14 |
| Buy | 0 | 0.0 |
| Hold | 11 | 78.57 |
| Sell | 1 | 7.14 |
| Strong Sell | 1 | 7.14 |
Paychex is projected to stay under $99 in January
Expected Short fall just dropped to -1.32, may suggest upcoming price decrease. Paychex has relatively low volatility with skewness of -0.09 and kurtosis of -0.24. However, we advise all investors to independently investigate Paychex to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Bottom Line On Paychex
While many other companies in the staffing & employment services industry are either recovering or due for a correction, Paychex may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 22nd of December 2020, we believe that at this point, Paychex is
fairly valued with
very small odds of financial distress within the next 2 years. Our up-to-date buy-hold-sell advice on the company is
Strong Buy.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Paychex. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
