Reasons Why Investors Should Consider Buying Paychex Stock Now

Company Performance and Growth - Paychex Inc (PAYX) benefits from strong segmental performances, shareholder-friendly policies, and a robust liquidity position [1] - The company has a Zacks Rank 2 (Buy), indicating attractive investment opportunities [2] - Six fiscal 2025 earnings estimates were revised upward in the past 60 days, reflecting analyst confidence [2] - Paychex has consistently outperformed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 1.7% [3] - Fiscal 2025 earnings are projected at $5 per share, reflecting 5.7% YoY growth, with a further 6.5% increase anticipated in fiscal 2026 [3] - Revenue growth is driven by increasing clients and employees for HCM solutions, with a 5.5% CAGR from fiscal 2020 to 2024 [4] Shareholder Rewards and Liquidity - Paychex consistently rewards shareholders through dividends, paying$ 999.6M in fiscal 2022, $1.17B in fiscal 2023, and$ 1.32B in fiscal 2024 [5] - The company's current ratio stood at 1.39 at the end of Q2 fiscal 2025, up 13% YoY, indicating strong liquidity and ability to meet short-term obligations [6] Industry Comparison - AppLovin (APP) and UiPath (PATH) are other top-ranked stocks in the Zacks Business Services sector [7] - AppLovin has a Zacks Rank 1, a long-term earnings growth expectation of 20%, and a trailing four-quarter earnings surprise of 26.2% on average [7] - UiPath also holds a Zacks Rank 1, with a long-term earnings growth expectation of 19.3% and a trailing four-quarter earnings surprise of 38.8% on average [8]