Paychex, Inc. (PAYX) is a major player in human capital management solutions, boasting a market cap of $39.9 billion. The company offers services like payroll processing and benefits administration through cloud-based platforms, catering to small and medium-sized businesses.

As a large-cap stock, PAYX’s market cap exceeds $10 billion, solidifying its influence in the software – application industry. Despite a 31.3% dip from its 52-week high, the company continues to generate revenue from recurring service contracts, supported by a large client base in the U.S. and parts of Europe.

Over the past year, PAYX has fallen 23.8%, significantly underperforming the Dow Jones Industrial Average. The stock is currently trading below both its 200-day and 50-day moving averages since July and June, respectively.

PAYX shares dropped 1.4% after its Q1 earnings release, despite reporting strong results. Total revenue increased by 16.8%, meeting analyst estimates, while adjusted EPS grew 5.2% to $1.22, surpassing consensus estimates. The company raised its fiscal 2026 adjusted EPS growth outlook to 9-11%.

Analysts express caution about PAYX’s performance compared to its rival, Automatic Data Processing, Inc. (ADP). With a consensus rating of “Hold” and a mean price target of $135.28, analysts project a 22.1% premium to current price levels for PAYX.

Read more at Yahoo Finance: Is Paychex Stock Underperforming the Dow?