Exploring the Growth Potential of NASDAQ:PCTY as It Nears a Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PAYLOCITY HOLDING CORP (NASDAQ:PCTY) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PAYLOCITY HOLDING CORP has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for NASDAQ:PCTY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PCTY has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 38.36% over the past year.
• The Earnings Per Share has been growing by 32.16% on average over the past years. This is a very strong growth
• The Revenue has grown by 23.62% in the past year. This is a very strong growth!
• 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.

How We Gauge Health for NASDAQ:PCTY

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PCTY has achieved a 7 out of 10:

• PCTY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• The current and quick ratio evaluation for PCTY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NASDAQ:PCTY

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PCTY, the assigned 8 is a significant indicator of profitability:

• PCTY has a Return On Equity of 17.76%. This is in the better half of the industry: PCTY outperforms 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.
• PCTY has a Operating Margin of 18.22%. This is amongst the best in the industry. PCTY outperforms 86.25% of its industry peers.
• PCTY's Operating Margin has improved in the last couple of years.
• 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 do we evaluate the setup for NASDAQ:PCTY?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:PCTY is 7:

Although the technical rating is bad, PCTY does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 149.44. Right above this resistance zone may be a good entry point.

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

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.