From Nasdaq: 2024-06-26 00:48:39

Paychex is set to report its Q4 FY’24 results, with expected earnings of $1.06 per share and revenues growing 5% y-o-y to $1.3 billion. The company’s management solutions business is anticipated to drive growth, despite some concerns over a potential economic downturn due to high valuation multiples and slowing consumer spending.

Paychex stock has shown mixed returns over the past few years, underperforming the S&P 500 in 2023. The Trefis High Quality Portfolio, consisting of 30 stocks, has consistently outperformed the S&P 500. With a focus on small and medium-sized businesses, Paychex could face challenges amid slowing consumer spending and a slight uptick in the U.S. unemployment rate in May.

Investors remain cautious about Paychex stock, trading at a relatively high multiple of 27x consensus FY’24 earnings. Concerns linger over potential impacts from slowing consumer spending growth and rising unemployment rates in the U.S. Despite stable dividends and predictable earnings, the company may face challenges ahead in an uncertain macroeconomic environment.

In terms of returns, Paychex saw a 5% return in June 2024, a 6% return YTD in 2024, and a total return of 107% from 2017-2024. Comparatively, the S&P 500 saw a 3% return in June 2024, a 14% return YTD in 2024, and a total return of 143% from 2017-2024. The Trefis Reinforced Value Portfolio also outperformed both Paychex and the S&P 500 with a 2% return in June 2024, a 6% return YTD in 2024, and a total return of 653% from 2017-2024.



Read more at Nasdaq: What To Expect From Paychex Q4 Results?