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Why Paychex (PAYX) is a Top Growth Stock for the Long-Term
ZACKS· 2025-12-03 15:46
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? Devel ...
Paychex (PAYX) is a Top-Ranked Growth Stock: Should You Buy?
ZACKS· 2025-11-07 15:45
Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9][10] Company Spotlight: Paychex (PAYX) - Paychex, Inc. is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services, primarily serving small- to medium-sized businesses [11] - Currently rated 3 (Hold) with a VGM Score of B, Paychex is also a strong candidate for growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 9.8% for the current fiscal year [12] - Recent upward revisions in earnings estimates by analysts and a Zacks Consensus Estimate increase to $5.47 per share further support Paychex as a potential investment [12]
Here's Why Paychex (PAYX) is a Strong Growth Stock
ZACKS· 2025-06-26 14:51
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [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 - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies optimal entry points based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [11] Company Spotlight: Paychex (PAYX) - Paychex, Inc. is a leading provider of integrated human capital management solutions for small- to medium-sized businesses [12] - Currently rated 3 (Hold) with a VGM Score of B, Paychex shows potential for growth with an 8% year-over-year earnings growth forecast [13] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 1.3% position Paychex as a strong candidate for growth investors [13]