Paychex stock: buy or sell?
Nov 24th, 2020
Paychex stock brief
- Paychex closed on Tuesday at $93.73 after climbing a 1.91%.
Should I buy Paychex stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PAYX stock a buy?
Currently, Paychex stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't struggle with upper resistances, and usually it scales quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Price is now at 1.30% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $94.95. Set your stop-loss at $85.46
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$94.95||$85.46||10.00%|
Should I sell Paychex stock?
"To sell or not to sell", if you are holding Paychex shares?. In the same way as when we have to buy shares, choosing when is appropiate time to sell is not a haphazard decision, and we must follow our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only valid for selling shares you already own, not for shorting $PAYX stock
As a rule of thumb, you should not keep a trade that results in losses greater than those expected at the time of the buy. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Paychex stock?
In the current situation of Paychex there is not any eligible sell setup, so Paychex stock holders with operations in green can keep their positions
We don't have any rating posted in the previous 30 days for Paychex
Paychex stock analysis
Since last July, Paychex has been printing an uptrend that so far marked an amazing 36.16%. The price line shows higher peaks and higher troughs, and along the way gave some buy points for those who wanted to trade in. Latest low was in late October, when price bounced at $79.03. Paychex broke out above $84.48 (its last top) on November 3. That breakout was a good entry point that resulted in a 10.95% profit
Supports and resistances
Price is at all-time highs and there are not upper resistance levels.
The current support levels are:
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 68.83. Paychex stock inched a 1.33% since that level was lost
Paychex stock price history
Paychex went public priced at an adjusted price1 of $0.11 on Aug 1983. Since then, PAYX stock surged by 85,109.09%, with an average of 2,300.25% per year. If you had invested thousand dollars in Paychex stock on the IPO, it would be valued $852,090.91 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Paychex stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are issued every day by banks, financial institutions and independent analysts.
The following table shows the price target posted by financial institutions over the last 30 days. If you are a small investor you must not invest based on these projections.
In the previous 30 days we couldn't find any price target posted for Paychex stock.
Earnings and financials
In early October, Paychex ($PAYX) hosted the quarterly earnings event and released the FQ1 report. Paychex beat analysts estimates and posted an earnings per-share of $0.63, that is a 14.55% better than expected compared to the previous forecasts of $0.55. Similarly, reported sales were $932.2 million versus estimates of $895.4 million.By comparison, the EPS for the same quarter last year was $0.71, so reported EPS is a reduction of -11.27%. Looking at turnover, figures sliced a -5.90% compared to $9.9B same quarter a year ago.
Paychex ($PAYX) will host the earnings call mid next December.
Paychex belongs to the Staffing & Employment Services industry, where it has 12 industry peers.
Paychex most relevant competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|Automatic Data Processing ($ADP)||$73.3B||Buy||2|
|Upwork ($UPWK)||$4.3B|| ||5|
1 In the last 30 days.
To better understand Paychex performance you must compare its gains with other related stocks in same sector or industry.. For Paychex, the benchmark is made against Automatic Data Processing, TriNet, 51job, Upwork, Manpower and ASGN.
|Automatic Data Processing ($ADP)||19.90%||24.70%||22.10%|
Important:The thoughts written in this article are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the particular scenarios of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for educative reasons only
|Tuesday, November 24th, 2020|
|Day range||$91.65 - $93.81|
|Average true range||$2.51|
|50d mov avg||$83.39|
|100d mov avg||$78.40|
|200d mov avg||$73.93|
|Earnings date||December 16th, 2020|