Paychex Share Price Forecast October 2021 – Time to Buy PAYX?

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The Rochester, New York-based payroll services and data processing company Paychex inc. has been performing better than most investors expected. On October 18th, its NASDAQ-listed stock PAYX recorded $120.11 before the markets closed. Let us analyse how and why Paychex has reached the list of top performers in the following and determine whether one should buy PAYX or not.

Paychex Inc. – Technical Analysis

The total market capitalisation of Paychex reached a total of $42.9 billion yesterday. Its enterprise value is close to $41.3 billion while the total outstanding shares are just over $360 million. The company is known for engaging in human resources, payroll, benefits, and insurance for small and medium-sized businesses. According to the Paychex income statement, the net income of the company is $1.09 billion, and the total revenue of $4.05 billion.

From a technical perspective, PAYX is looking to go higher after reaching a new support level yesterday. The strong uptrend of PAYX that came in after it broke the resistance level of 117.11 is confirmed by 17 different technical indicators including RSI (71.60), MACD (2.08), EMA (117.63), and SMA (118.23).

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Recent Developments

On October 14, the board of directors of Paychex announced its quarterly dividend for the current year. The dividend came out as $0.66 per share payable November 29, 2022, to the shareholders.

The way Paychex has been increasing its earnings per share is what you would expect from a company backed with more than 50 years of expertise in its relevant sector.

Last Friday Paychex finished the purchase of a San Francisco-based benefits enrollment and admin provider called Flock. Though the representatives of Paychex have shared any hints about the financial terms of this deal, it has the technology services sector and experts excited to know more. Post the acquisition, Paychex now has Flock’s benefits admin software and all the employees of the acquired company are about to join Paychex too.

The president and CEO of Paychex, Martin Mucci believes that the company’s full services including newly acquired Flock’s platform would bring growth and expansion in the coming days. In the wake of the post-COVID world, we get to see a competitive employment scenario that brings demands for companies like Paychex and several of its competitors like TriNet Group inc. and BSSI, etc.

Should You Buy PAYX Shares?

To anyone starting in the stock market these days, Paychex might seem like an exciting prospect that must be kept on a watch list. But what concerns any sensible and experienced trader is a company’s performance record and potential to reach further heights despite facing difficulties. Investing in a tech stock like PAYX might be a little too old-fashioned for some but the way this company’s appreciation for profitability has risen in recent months is phenomenal.

The company provides Human Resource services to around 1.7 million employees. The consistent growth has been a real indication that Paychex has been supported by long-term investors in the past three years that brought EPS to a 5.7% per year increase. This shows that the company is going steadily in the right direction and investors who choose to buy PAYX at the moment would definitely be able to profit from Paychex’s sustainable revenue.

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About Prodosh Kundu PRO INVESTOR

Prodosh Kundu is the Founder & CEO of SERP Consultancy, a prominent Digital Marketing Company in Kolkata, India. Starting his career in 2004, he is a Google AdWords certified internet marketing professional, SEO consultant, strategist, and analyst. With his strong understanding of financial market regulations, stocks, blockchain technology, cryptocurrency, & forex, Prodosh has written thousands of articles, blogs, broker reviews, guides, and offered critical analysis & recommendations on investment opportunities!