Paychex stock: buy or sell?

PAYX stock price: $93.73 1.91% At close on Nov 24th, 2020

Updated on:
Nov 24th, 2020

2

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 setupBuy pointStop lossRisk
ATH buy setup$94.95$85.4610.00%

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

Paychex ratings

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

SMAs overview

PAYX stock SMAs chart

Supports and resistances

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $88.20 (-5.90% below)
  • S2: $87.01 (-7.17% below)
  • S3: $84.96 (-9.36% below)
  • Bollinger bands

    PAYX stock Bollinger Bands chart

    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

    PAYX stock RSI chart

    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

    PAYX stock price history chart

    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 competitors

    Paychex belongs to the Staffing & Employment Services industry, where it has 12 industry peers.

    Paychex most relevant competitors are:

    Paychex competitors
    CompanyMarket capRatingBullish ratings1
    Paychex ($PAYX) $32.6B
    Automatic Data Processing ($ADP) $73.3B Buy 2
    TriNet ($TNET) $5.0B Neutral 0
    51job ($JOBS) $4.7B Neutral 0
    Upwork ($UPWK) $4.3B Strong buy 5
    Manpower ($MAN) $4.3B Neutral 0
    ASGN ($ASGN) $4.2B Buy 1

    1 In the last 30 days.

    Paychex performance

    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.

    PAYX performance compared
    Company1m3m6m
    Paychex ($PAYX) 14.30% 23.50% 32.50%
    Automatic Data Processing ($ADP) 19.90% 24.70% 22.10%
    TriNet ($TNET) 6.00% 10.80% 30.80%
    51job ($JOBS) -1.10% 8.80% 12.50%
    Upwork ($UPWK) 77.60% 140.10% 182.90%
    Manpower ($MAN) 17.60% 16.90% 17.60%
    ASGN ($ASGN) 17.80% 13.40% 24.20%

    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

    Paychex summary

    Tuesday, November 24th, 2020
    Open$92.38
    Close$93.73
    Day range$91.65 - $93.81
    Previous close$91.97
    Session gain1.91%
    Average true range$2.51
    50d mov avg$83.39
    100d mov avg$78.40
    200d mov avg$73.93
    Earnings dateDecember 16th, 2020

    Frequently asked questions

    What is Paychex stock symbol?

    Paychex, Inc. is a public company trading in the US stock market with the PAYX symbol

    Is Paychex stock a buy or sell?

    Paychex had no ratings in the last 30 days Read the article to get additional tips on trading PAYX stock.

    Will PAYX go up?

    There were no forecasts posted by market analysts in the last 4 weeks for Paychex.