NASDAQ:PCTY—A High-Growth Stock Gearing Up for Its Next Upward Move.

In this article, we'll take a closer look at PAYLOCITY HOLDING CORP (NASDAQ:PCTY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, PAYLOCITY HOLDING CORP has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Examination for NASDAQ:PCTY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PCTY has achieved a 8 out of 10:

• PCTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.36%, which is quite impressive.
• PCTY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.16% yearly.
• PCTY shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.62%.
• Measured over the past years, PCTY shows a very strong growth in Revenue. The Revenue has been growing by 25.49% on average per year.
• The Earnings Per Share is expected to grow by 16.72% on average over the next years. This is quite good.
• PCTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.99% yearly.

Health Assessment of NASDAQ:PCTY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PCTY, the assigned 7 reflects its health status:

• There is no outstanding debt for PCTY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• PCTY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How do we evaluate the Profitability for NASDAQ:PCTY?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PCTY, the assigned 8 is noteworthy for profitability:

• PCTY has a better Return On Equity (17.76%) than 73.75% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 18.43%, PCTY belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
• The last Return On Invested Capital (18.43%) for PCTY is above the 3 year average (11.96%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 14.42%, PCTY belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
• PCTY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 18.22%, PCTY belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
• In the last couple of years the Operating Margin of PCTY has grown nicely.
• With an excellent Gross Margin value of 68.85%, PCTY belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
• PCTY's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:PCTY

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:PCTY is 8:

Although the technical rating is bad, PCTY does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 134.85. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 133.18, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of PCTY for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of PCTY

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.