Forecasting The Future: 9 Analyst Projections For Paychex
Across the recent three months, 9 analysts have shared their insights on Paychex (NASDAQ:PAYX), expressing a variety of opinions spanning from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 7 | 2 | 0 |
| Last 30D | 0 | 0 | 3 | 1 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 3 | 1 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $121.78, with a high estimate of $130.00 and a low estimate of $111.00. This upward trend is apparent, with the current average reflecting a 0.06% increase from the previous average price target of $121.71.
Exploring Analyst Ratings: An In-Depth Overview
The perception of Paychex by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| James Faucette | Morgan Stanley | Lowers | Equal-Weight | $122.00 | $125.00 |
| Ashish Sabadra | RBC Capital | Maintains | Sector Perform | $130.00 | $130.00 |
| Mark Marcon | Baird | Lowers | Neutral | $124.00 | $126.00 |
| Jason Kupferberg | B of A Securities | Raises | Underperform | $113.00 | $111.00 |
| Ashish Sabadra | RBC Capital | Maintains | Sector Perform | $130.00 | $130.00 |
| Jason Kupferberg | B of A Securities | Raises | Underperform | $111.00 | $108.00 |
| Bryan Bergin | TD Cowen | Lowers | Hold | $121.00 | $122.00 |
| Moshe Katri | Wedbush | Maintains | Neutral | $115.00 | - |
| Ashish Sabadra | RBC Capital | Maintains | Sector Perform | $130.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Paychex. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Paychex compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Paychex's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Paychex's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Paychex analyst ratings.
Unveiling the Story Behind Paychex
Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 740,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.
Understanding the Numbers: Paychex's Finances
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Paychex's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 4.22%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.
Net Margin: Paychex's net margin excels beyond industry benchmarks, reaching 34.64%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 13.71%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Paychex's ROA stands out, surpassing industry averages. With an impressive ROA of 3.98%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Paychex's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.23.
What Are Analyst Ratings?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.