Paylocity (PCTY) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score evaluates stocks based on price trends and earnings estimate changes [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93%, significantly outperforming the S&P 500 [8] - A total of over 800 stocks are rated highly, making it essential for investors to utilize Style Scores to refine their choices [9] Stock Example: Paylocity (PCTY) - Paylocity Holding Corporation, a provider of cloud-based payroll and HCM solutions, is currently rated 3 (Hold) with a VGM Score of B [11] - The stock has a Momentum Style Score of A, with a recent price increase of 3.3% over the past month [11] - Analysts have raised earnings estimates for fiscal 2026, with the consensus now at $7.34 per share, reflecting an average earnings surprise of +13.8% [12]