NASDAQ:PAYX

Paychex (PAYX)

116.84
+0.51 (0.44%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
100 watching
0
Investor Insights
star iconAug 1, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Paychex (PAYX) is facing a mix of challenges and opportunities, as noted by various experts. The company offers a competitive dividend yield of around 4.5% to 4.7%, making it attractive for income-focused investors. However, shares have recently been pressured by concerns surrounding AI potentially disrupting the business model, though some analysts believe that AI may ultimately serve as an assistive tool rather than a replacement. While the stock has seen a 14% decline over the past three months, one expert suggests it is fundamentally solid and worthy of investment. The company's focus on small and medium-sized businesses introduces additional risk, especially in light of possible rising unemployment; nonetheless, it has maintained a good reputation and is considered a steady operator that could attract a premium valuation amidst current economic uncertainties.

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Consensus
Mixed
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Valuation
Fair Value
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Similar
ADP,ADP
WEAK BUY
Large payroll processing company. Very dependent on employment numbers. With employment under pressure, it kind of lessens its opportunities. Prefers Automatic Data Processing (ADP-N). (See Top Picks.)
WATCH
Yielding 3.8%. Attractive if it gets down to $25. Decreasing in value because interest rates are lower.
COMMENT
Has always thought this was too expensive.
BUY
(Market Call Minute.)
PAST TOP PICK
(A Top Pick Nov 9/06. Up 8.3%.) Increased dividend from $.64 to $.84 a share. A cash cow.
TOP PICK
Automated payroll distributors. Every 2 weeks, when payroll taxes are taken out, they get to bank it for 3 days before it goes to the IRS. Organic growth has been very strong over the last 3 years. Just increased the dividend by 30% to $0.84.
PAST TOP PICK
(A Top Pick Aug 3/05. No change.) Dividend bump was 26% last year and expecting another increase shortly. Would recommend as a buy.
WEAK BUY
Employment sensitive so that as more people get hired, more paychecks get processed. As interest rates rise, they make more money as they get to bank the money before they send out. Only have 9% market share, so there is a lot of room to grow. Has been a big run-up since last September, so be a gradual buyer.
TOP PICK
Growing dividend. Interest rates are rising in the US. Employment jobs are being added. Both are positive signs. Expecting 20% growth.
PAST TOP PICK
(A Top Pick June 8/04. Down 15.5%.) Tied to the economy. Just increased the dividend. Still likes. A good entry point.
BUY
Got pummeled when they reported $0.01 short of expectations. With higher employment and interest rates rising, performance should start to improve. Still buying for clients.
TOP PICK
More people are being hired in the US and interest rates are going up. They deal with employers with 15 or less employees and this is the demographics of the future.
BUY
Looking to expand into the UK. Making a small acquisition in that direction. When interest rates start to rise, things will start to improve for them.
BUY
Prefers over ADP. Growing at a faster rate. Higher margins. Has a lot more room to grow into. If you own, take some profits off the table.
BUY
Very profitable and good at what they do. Expensive, but good for a long-term hold.
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