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

Exploring Growth Potential: PAYLOCITY HOLDING CORP (NASDAQ:PCTY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and PAYLOCITY HOLDING CORP has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected PAYLOCITY HOLDING CORP on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NASDAQ:PCTY

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PCTY, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 44.42% over the past year.
• PCTY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.16% yearly.
• Looking at the last year, PCTY shows a very strong growth in Revenue. The Revenue has grown by 29.08%.
• PCTY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.49% yearly.
• Based on estimates for the next years, PCTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.49% on average per year.
• Based on estimates for the next years, PCTY will show a quite strong growth in Revenue. The Revenue will grow by 16.00% on average per year.

Health Analysis for NASDAQ:PCTY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PCTY has earned a 7 out of 10:

• 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.

Assessing Profitability for NASDAQ:PCTY

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PCTY scores a 8 out of 10:

• Looking at the Return On Equity, with a value of 16.98%, PCTY is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
• The Return On Invested Capital of PCTY (18.31%) is better than 82.50% of its industry peers.
• The last Return On Invested Capital (18.31%) for PCTY is above the 3 year average (11.96%), which is a sign of increasing profitability.
• PCTY has a Profit Margin of 12.96%. This is amongst the best in the industry. PCTY outperforms 87.50% of its industry peers.
• PCTY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 17.08%, PCTY belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
• PCTY's Operating Margin has improved in the last couple of years.
• PCTY has a Gross Margin of 68.93%. This is amongst the best in the industry. PCTY outperforms 85.00% of its industry peers.
• In the last couple of years the Gross Margin of PCTY has grown nicely.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:PCTY exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

PCTY has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 177.40. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 168.53, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.