New
Why Paychex Stock Topped The Market Today
Paychex (NASDAQ: PAYX) notched slight beats on both the top and bottom lines in its latest quarter. Consequently, its share price rose slightly on the news. The financial services company's stock bumped 1.4% higher across Thursday's trading session, which was a better performance than the benchmark S&P 500 index's marginal decline.
Single-digit growth in quarterly fundamentals
Paychex unveiled its second quarter of fiscal 2025 results before market open on Thursday, revealing that it earned just under $1.32 billion in total revenue. That was an improvement of 5% over the same period last year. The dynamic was similar on the bottom line, as non-GAAP (adjusted) net income enjoyed 5% year-over-year growth to $411 million ($1.14 per share).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
Both headline numbers edged past the consensus analyst estimates. On average, pundits tracking Paychex stock were modeling $1.31 billion on the top line and $1.13 per share for adjusted net income.
In its earnings release, Paychex said that its core management-solutions business grew by 3% (to almost $963 million) on the back of an increase in client count. What also helped was higher product penetration in fields such as human-resources solutions and retirement.
More of the same expected
Management reiterated the guidance it provided for the entirety of fiscal 2025. It continues to expect 4% to 5% revenue growth for the period compared to fiscal 2024, with 5% to 7% expansion in adjusted, per-share net income.
Paychex feels like a "steady as she goes" business these days, and as long as a rising economy keeps small and mid-sized businesses (SMBs) afloat, the company should do fine. The company continues to hand out a relatively generous dividend that yields nearly 3%, so it might be of particular interest to income investors looking for something of an under-the-radar play.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $334,266!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,976!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $479,727!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 16, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
