Why Paylocity (PCTY) is a Top Growth Stock for the Long-Term

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Zacks Style Scores Overview - Zacks Style Scores rates stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Paylocity (PCTY) - Paylocity is a cloud-based payroll and HCM software provider for medium-sized organizations in the U.S. [11] - Currently rated 3 (Hold) with a VGM Score of B, PCTY shows potential for growth with a projected earnings growth of 2.4% for the current fiscal year [11] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $7.34 per share, with an average earnings surprise of +13.8% [12]