Paychex (PAYX) Stock

PAYX is seeing growth in its revenue thanks to a strong business model, a variety of products and services, and smart acquisitions.

Investors looking at outsourcing stocks probably know about Genpact (G) and Paychex (PAYX). However, which of these two stocks offers a better value for investors at this moment?

Paychex Inc. has a remarkable track record, achieving a compound annual growth rate (CAGR) of 19% since it started. The company shows consistent revenue growth, maintains high gross profit margins, and has a better return on invested capital (ROIC). Additionally, Paychex offers a quarterly dividend, has a strong history of raising dividends, and maintains a safe payout ratio.

Paychex's earnings for the first quarter showed a small increase in revenue and earnings per share, but this isn't enough to change my hold rating because there are no major drivers for growth. The end of the ERTC program affected revenue growth and profit margins, yet the company is still in a strong financial position with a lot of cash. While new products like Paychex Flex Engage and an AI recruiting tool demonstrate innovation, it's difficult to measure their effect on sales.

Paychex (PAYX) reached a record high on Tuesday after the human resources services company announced results that exceeded expectations and revealed growth in its client base.

ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--The Paychex Small Business Employment Watch for September indicates that the national jobs index for U.S. small businesses with under 50 employees decreased slightly to 99.84, but has averaged 100.31 in 2024, showing some job growth. In September, hourly earnings increased by 3.01%, although the three-month annualized growth in hourly earnings has stayed below three percent for the last five months. “Our m.

In the first quarter of fiscal 2025, PAYX's revenue increased due to the growth of its PEO and Insurance Solutions.

The main figures for Paychex (PAYX) provide an overview of the company's performance for the quarter that ended in August 2024. However, it could be useful to look at some important metrics in relation to Wall Street predictions and last year's results.

Paychex, Inc. (NASDAQ:PAYX) will hold its Q1 2025 Earnings Conference Call on October 1, 2024, at 9:30 AM ET. The call will feature company leaders John Gibson, the President and CEO, and Bob Schrader, the Chief Financial Officer. Various analysts from firms like Baird, Citigroup, and UBS will also participate in the discussion.