NASDAQ:PCTY—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PAYLOCITY HOLDING CORP (NASDAQ:PCTY) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PAYLOCITY HOLDING CORP has surfaced on our radar for growth with base formation, warranting further examination.

Growth Assessment of NASDAQ:PCTY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PCTY was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 44.42% over the past year.
• Measured over the past years, PCTY shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.16% on average per year.
• The Revenue has grown by 29.08% 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!
• PCTY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.36% yearly.
• 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 Assessment of NASDAQ:PCTY

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PCTY has achieved a 7 out of 10:

• There is no outstanding debt for PCTY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• PCTY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: 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:

• PCTY has a better Return On Equity (16.98%) than 75.00% of its industry peers.
• The Return On Invested Capital of PCTY (18.31%) is better than 83.75% of its industry peers.
• The 3 year average ROIC (11.96%) for PCTY is below the current ROIC(18.31%), indicating increased profibility in the last year.
• The Profit Margin of PCTY (12.96%) is better than 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 86.25% of the companies in the same industry.
• In the last couple of years the Operating Margin of PCTY has grown nicely.
• Looking at the Gross Margin, with a value of 68.93%, PCTY belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
• In the last couple of years the Gross Margin of PCTY has grown nicely.

How do we evaluate the setup for NASDAQ:PCTY?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:PCTY has a 8 as its setup rating, indicating its current consolidation status.

Although the technical rating is bad, PCTY does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 169.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 167.51, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

Check the latest full technical report of PCTY for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.