Paychex stock shot up 20% in one month from the end of June to the end of July before taking a breather. It's regrouped and is on the rise again. On Monday the Relative Strength Rating for Paychex stock shot up from 69 to 75.
In that extraordinary month from June to July, Paychex stock crossed above both its 50-day line and its 200-day. It continues to trade comfortably above both. Monday afternoon, watchlist candidate Paychex stock was down fractionally.
Paychex Stock Among Best Overall
The 75 RS Rating puts Rochester, N.Y.-based Paychex in the top 25% of all stocks for price performance this past year. It's a good rating, though still a few clicks short of the 80 RS Rating that CAN SLIM investors like to see. But its other ratings shine brightly. The payroll and HR processing software maker for 730,000 companies boasts a 92 Earnings Per Share Rating of a best-possible 99.
Its 90 Composite Rating shows it's among the best overall. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Paychex stock also has a B Accumulation/Distribution Rating, showing that funds are fairly aggressively buying its stock.
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Earnings grew 20% last quarter to 97 cents per share. The prior three stanzas its EPS rose 16%, 9% and 12%. Revenue rose 7% year over year in its most recent quarter, to $1.23 billion. At the end of June the company said it expects profits to grow 9% to 10% in fiscal 2024, which will end around May 31, 2024.
Among Top 5 In Group
Paychex stock holds the No. 2 rank among its peers in the 25-company Commercial Services-Outsourcing industry group, according to IBD Stock Checkup. Corporate uniforms provider Cintas is No. 1 in the group. And Paychex rival ADP is No. 3 among the highest-rated stocks in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily identifies share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
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