NASDAQ:PAYX
Paychex (PAYX)
112.50
-0.12 (0.11%)
as of Oct 21, 2026, 8:00:00 pm Market Closed.
100 watching
Financials 
Technical Analysis 0
BUY
America's 2nd-highest payroll processor which thrives when the employment is strong, like now. Today, they reported a blow-out quarter: an 11-cent earnings beat above 80-cents; beat sales, which are 13% YOY; and raised their full-year forecast for the second straight quarter from 10-12% to 18-20% for 2022. Shares exploded 5% today. This can run higher. It has a habit of reporting strong numbers, then shares sell-off, but not this time.
computer softwareprocessing
TOP PICK
Automated payroll deposit company. Earnings beat forecast and streets in the 12-14% range. If interest rates rise, this will be a bonus for the company. They bank all payroll tax remittances over a weekend, which makes a good amount of money. Management solution side of the business is growing. (Analysts’ price target is $116.22)
David DriscollOwned
computer softwareprocessing
BUY
It's the second-biggest payroll processor in the U.S. with a big outsourced HR division doing very well as a kicker. They delivered a super quarter last week, with top and bottom line beats and raising their full-year forecast across the board. It's risen near it's all-time high.
computer softwareprocessing
WATCH
A stable company that processes payroll for 750,000 companies around the US. A stable business that will grow along with the economy. Trading at a pricy 35x earnings. Predictability is very high but they look at growth against own history and other competition. There may be an opportunity in the future to enter.
computer softwareprocessing
BUY ON WEAKNESS
A competitor with ADP. The smaller of the two. Has been great performer but it is a little ahead of itself. If the US dollar continues to decline, you could see a good opportunity. Interest rates and strong job growth will be a stimulus.
computer softwareprocessing
BUY
On Monday, it hit an all-time high during a fabulous jobs report, but then yesterday the market didn't like its quarterly report, which beat in earnings, inline sales and slightly raised full-year forecast. He liked this report, but Wall Street didn't. PAYX shares plunged 5%. He saw this coming, because PAYX tends to report good numbers then sells off, which creates a buying opportunity before grinding higher.
computer softwareprocessing
PAST TOP PICK
(A Top Pick Feb 07/20, Up 7%) Services small businesses, and that's what the recovery will be about. Cash cow stock.
David DriscollOwned
computer softwareprocessing
BUY
COMMENT
Today it reported a solid top and bottom beat, and raised their forecast. Revenues and earnings are down, though, but today's numbers far exceeded expectations. Still, the stock fell 2.5% today. After last July's report, the stock also sold off but then came back. This pattern could repeat.
computer softwareprocessing
DON'T BUY
PAYX has a solid reputation, but everyone in payroll processing faces rising jobless claims and layoffs and this hurts this sector. Payroll is driven by macro factors, not business fundamentals. Avoid this space and wait until a recession bottom and payrolls improve. Also, these companies won't earn interest on the floats they hold because rates are near zero.
computer softwareprocessing
TOP PICK
If you believe the job numbers from Monday, they were substantial. This name is a beneficiary from job growth. They deal with small and mid-sized companies with and pays out a dividend of 3.6%. They have been growing business into HR so the dividend is going higher. It's a cash cow since they bank the payroll money. (Analysts’ price target is $85.44)
David DriscollOwned
computer softwareprocessing
PARTIAL BUY
Take a half-position now, then wait for a pullback. As businesses hire, PAYX will do well. And US unemployment is at record lows. He's owned this forever and will hold on. Drill down on US unemployment figures, because it isn't balanced; there are pockets of higher unemployment which is concerning.
computer softwareprocessing
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