Worth Observing Stocks: Paychex, Inc. (NASDAQ:PAYX)


Paychex, Inc. (NASDAQ:PAYX) added 2.53% and closed its last session at $59.46. The stock has the market capitalization of $21.5 Billion with the total outstanding shares of 361.65 Million. Paychex, Inc.. has Analysts’ Mean Recommendation of 3.43 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 28.21 for trailing twelve months while its Forward P/E is 24.82.

Paychex, Inc. (NASDAQ:PAYX) touched its 52-Week High of $61.87 on Jul 11, 2016 while it’s 52-Week Low of $45.76 on Jan 20, 2016. The company currently has Return on Assets of 11.9 percent, Return on Equity of 40.1% and Return on Investment of 39.4 percent. The stock currently showing Weekly Volatility of 1.64%% and Monthly Volatility of 1.72% Percent with Average True Range of 0.92 and Beta of 0.87.

The 16 analysts offering 12-month price forecasts for Paychex Inc have a median target of 55.50, with a high estimate of 65.00 and a low estimate of 45.00. The median estimate represents a -6.66% decrease from the last price of 59.46.

Press Release:

The Paychex | IHS Small Business Jobs Index moderated slightly in November, down 0.02 percent from the previous month. This marks the third consecutive decline, which saw the national index decrease from 100.70 in August to 100.38 in November. Despite this, small business employment growth levels remain consistent with the same period a year ago. Among regions, the East South Central is experiencing the strongest growth, up 3.42 percent from last year. Georgia overtook Washington as the top-ranked state for small business employment growth. Seattle maintained its lead as the top metro area, with Atlanta following as a close second. Small business jobs growth for Leisure and Hospitality increased by 0.20 percent from the previous month, while Construction declined 0.17 percent.

National Index
At 100.38, the Paychex | IHS Small Business Jobs Index settled at a level consistent with this time a year ago, after three consecutive months of decline. The recent slowdown in job growth flattened from October to November, with the index decreasing just 0.02 percent. Despite the index’s recent declines, small businesses have experienced positive job gains over the base year for more than 60 consecutive months, dating back to 2011. With one month remaining in 2016, the national index has averaged 100.64, just above 2015’s average of 100.59.

Regional Employment
Declines in New England, Pacific, and the West South Central, specifically Texas, drove the national index down in November, offsetting modest gains for the rest of the country. Climbing to 101.93, with a 0.18 percent increase in November, the South Atlantic is back near its record high set in June, 101.96. However, neighboring East South Central jumped 1.40 percent in November to 102.96 to take the lead among regions. Compared to the East South Central, the West South Central has trended in the opposite direction during the past year, falling from second to last place among regions. Moving farther west, Pacific began 2016 with four consecutive increases, but has decreased each of the past five months and is now at its lowest level since January 2012.

Company Profile:

Paychex, Inc. is a national provider of payroll, human resource, and employee benefit outsourcing solutions for small-to medium-sized businesses.  The company has two reportable business segments: Payroll and Human Resource Services and Professional Employer Organization.  Paychex’s Payroll segment is a national payroll processing and payroll tax preparation service provided to small-to medium-sized business.  The Professional Employer Organization segment provides human resource products and services.