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NASDAQ:PCTY—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: Jan 26, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PAYLOCITY HOLDING CORP (NASDAQ:PCTY) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PAYLOCITY HOLDING CORP showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NASDAQ:PCTY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PCTY has achieved a 8 out of 10:

  • PCTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.30%, which is quite impressive.
  • The Earnings Per Share has been growing by 32.16% on average over the past years. This is a very strong growth
  • The Revenue has grown by 34.06% in the past year. This is a very strong growth!
  • The Revenue has been growing by 25.49% on average over the past years. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 17.44% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 16.00% on average over the next years. This is quite good.

Health Analysis for NASDAQ:PCTY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PCTY was assigned a score of 7 for health:

  • PCTY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
  • The current and quick ratio evaluation for PCTY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Understanding NASDAQ:PCTY's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PCTY has achieved a 9:

  • PCTY's Return On Assets of 3.98% is fine compared to the rest of the industry. PCTY outperforms 61.25% of its industry peers.
  • PCTY has a Return On Equity of 16.24%. This is in the better half of the industry: PCTY outperforms 75.00% of its industry peers.
  • PCTY has a Return On Invested Capital of 17.23%. This is amongst the best in the industry. PCTY outperforms 82.50% of its industry peers.
  • The 3 year average ROIC (11.96%) for PCTY is below the current ROIC(17.23%), indicating increased profibility in the last year.
  • PCTY has a better Profit Margin (11.70%) than 87.50% of its industry peers.
  • PCTY's Profit Margin has improved in the last couple of years.
  • PCTY has a better Operating Margin (15.27%) than 83.75% of its industry peers.
  • In the last couple of years the Operating Margin of PCTY has grown nicely.
  • With an excellent Gross Margin value of 68.99%, PCTY belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • PCTY's Gross Margin has improved in the last couple of years.

Why is NASDAQ:PCTY a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:PCTY currently has a 8 as setup rating:

Although the technical rating is bad, PCTY does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 165.26. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 157.08, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of PCTY contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of PCTY

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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PAYLOCITY HOLDING CORP

NASDAQ:PCTY (5/17/2024, 7:19:05 PM)

After market: 172.97 0 (0%)

172.97

+0.8 (+0.46%)

PCTY News

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News Image17 days ago - InvestorPlacePCTY Stock Earnings: Paylocity Holding Beats EPS, Beats Revenue for Q3 2024

PCTY stock results show that Paylocity Holding beat analyst estimates for earnings per share and beat on revenue for the third quarter of 2024.

News Image17 days ago - BusinessInsiderPCTY Stock Earnings: Paylocity Holding Beats EPS, Beats Revenue for Q3 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Paylocity Holding (NASDAQ:PCTY) just reported results for the third quarter of ...

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News Imagea month ago - Paylocity CorporationPaylocity announces Q3 FY24 earnings conference call
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Paylocity announces Q3 FY24 earnings conference call on May 2 after market close...

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