Paycom Software (NYSE:PAYC) closed at $265.50 in the recent trading session on Friday, marking a 1.02% drop. This lagged behind the S&P 500's daily loss of 0.85%. The Dow and Nasdaq also experienced losses of 0.75% and 0.96%, respectively.
The company's market cap, as reported by InvestingPro, is $15.36 billion USD, with a P/E ratio of 48.83, which is substantially higher compared to the Forward P/E ratio the company trades at, which is 34.84. It's worth noting that the company's P/E ratio is significantly higher than the industry average Forward P/E of 37.04, indicating that investors are willing to pay a higher price for its earnings.
Over the last month, Paycom's shares have dropped by 0.09%. This outperforms the Computer and Technology sector's 2.07% loss and the S&P 500's 3.02% loss in the same period. According to InvestingPro data, Paycom's 1-month price total return was -1.11%, and its 3-month price total return was -25.66%.
The company, part of the Internet - Software industry within the Computer and Technology sector, is scheduled to release its earnings report on October 31, 2023. The Zacks Consensus Estimates forecast an EPS of $1.62, reflecting a year-on-year increase of 27.56%, and revenue of $411.04 million, indicating a YoY increase of 23%.
InvestingPro Tips suggest that Paycom has consistently increasing earnings per share and holds more cash than debt on its balance sheet. In addition, the company's impressive gross profit margins, which stand at 87.2% according to InvestingPro data, suggest that the company is efficiently managing its costs relative to its net sales.
For the full year, earnings are expected to be $7.70 per share with revenue reaching $1.72 billion. These figures suggest changes of +25.41% and +24.78%, respectively, from last year's results.
Paycom currently holds a Zacks Rank of #3 (Hold). It trades at a Forward P/E ratio of 34.84, which is below its industry's average Forward P/E of 37.04, and maintains a PEG ratio of 1.47, which according to InvestingPro data, stands at 1.31.
The company's industry holds a Zacks Industry Rank of 72, positioning it among the top 29% of all industries based on the Zacks Rank system. For more insights and tips like these, consider subscribing to InvestingPro which lists 21 additional tips for Paycom and many other companies.
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