Paychex Inc. stock trades under the ticker PAYX & is a member of the software industry.
PAYX stock has shown recent bullishness that traders & investors alike may want to take a closer look at.
Breaking Down Paychex Inc. PAYX Stock’s Technical Performance
PAYX Stock Price: $112.45
10 Day MOving-Average: $109.11
50 Day Moving-Average: $112.73
200 Day Moving-Average: $100.55
RSI: 56.5
MACD: -0.967
Paychex Inc.’s stock completed a bullish MACD crossover yesterday, on a ~4.3% gap up day.
With higher than average volume, the share price bullishly crossed both the 10 & 50 Day Moving-Averages.
With 3% difference between the 10 & 50 Day MA’s, there looks to be an additional bump in momentum in the coming days for PAYX.
With an RSI still in the 50’s, PAYX stock looks set to establish a new range in the coming days, with bullish momentum still behind it.
Paychex Inc. PAYX Stock As A Long-Term Investment
Long-term oriented investors may be interested in Paychex Inc.’s stock for a variety of factors.
PAYX’s P/E(ttm) is 35.77, with a P/B of 13.26, which is both modest for a software company, especially considering that they work in the employee payment space where there is always going to be demand.
PAYX has 12.5% Quarterly Revenue Growth Y-o-Y, and has a ~74% % Institutional Investors.
With Total Cash (mrq) of $1.03B & Total Debt (mrq) of only $926M, their balance sheet looks appealing for investors.
Add in a 2.34% Dividend Yield & they look even more appealing.
One area of concern though regarding the dividend is their 83% Payout Ratio, which is rather high.
Paychex Inc. PAYX Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to take advantage of PAYX’s current upward momentum, while hedging off current volatility risks.
I am looking at the $105 & $110 strike calls with the 10/15 expiration date.
The $110’s have more Open Interest & are currently in-the-money with a delta of 0.67 & gamma of 0.0602.
The sentiment behind PAYX is still rather bullish, with far less open interest on the puts for the same expiration date.
I am looking at the $120 & $115 puts, although they are far less liquid than the calls, but are a necessity while we are in this volatile period.
Tying It All Together
Overall, Paychex Inc.’s stock has a lot of great attributes that investors & traders will both like.
From a long-term perspective they offer decently valued software industry exposure, with a nice dividend yield & solid looking balance sheet.
In the near-term, they are still riding positive momentum after their 4%+ gap up yesterday & look to have more steam to continue pushing their share price higher.
PAYX stock is worth taking a closer look at, no matter your trading style & time frame.
*** I DO NOT OWN SHARES OF PAYX STOCK ***