NASDAQ:PCTY qualifies as a high growth stock and is consolidating.

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Assessing Growth Metrics for NASDAQ:PCTY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PCTY boasts a 8 out of 10:

• PCTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.52%, which is quite impressive.
• The Earnings Per Share has been growing by 36.87% on average over the past years. This is a very strong growth
• Looking at the last year, PCTY shows a quite strong growth in Revenue. The Revenue has grown by 19.39% in the last year.
• Measured over the past years, PCTY shows a very strong growth in Revenue. The Revenue has been growing by 24.57% on average per year.
• Based on estimates for the next years, PCTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.33% on average per year.
• PCTY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.77% yearly.

Health Examination for NASDAQ:PCTY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:PCTY has earned 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.
• 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.

Understanding NASDAQ:PCTY's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PCTY was assigned a score of 8 for profitability:

• Looking at the Return On Assets, with a value of 4.87%, PCTY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
• PCTY has a Return On Equity of 20.01%. This is in the better half of the industry: PCTY outperforms 71.25% of its industry peers.
• PCTY's Return On Invested Capital of 18.84% is amongst the best of the industry. PCTY outperforms 83.75% of its industry peers.
• The 3 year average ROIC (14.31%) for PCTY is below the current ROIC(18.84%), indicating increased profibility in the last year.
• PCTY's Profit Margin of 14.74% is amongst the best of the industry. PCTY outperforms 88.75% of its industry peers.
• In the last couple of years the Profit Margin of PCTY has grown nicely.
• PCTY has a better Operating Margin (18.55%) than 86.25% of its industry peers.
• In the last couple of years the Operating Margin of PCTY has grown nicely.
• PCTY has a Gross Margin of 68.50%. This is amongst the best in the industry. PCTY outperforms 82.50% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:PCTY has a 8 as its setup rating, indicating its current consolidation status.

Although the technical rating is only medium, PCTY does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 154.37, a Stop Loss order could be placed below this zone.

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

Our latest full fundamental report of PCTY contains the most current fundamental analsysis.

Our latest full technical report of PCTY contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.