Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of PAYX stock:

Technical Analysis

The stock has shown an upward trend since January 2024, rising from around $115 to current levels above $120. Recent price action shows consolidation near the $122 level with moderate trading volume.

Fundamental Strength

According to recent reports, PAYX demonstrated solid performance in Q2 with:

• Revenue of $1.32 billion (5% YoY growth)
• EPS of $1.14 (beating estimates of $1.12)
• Expected EPS growth of 5.7% to $4.99 for FY2025

Market Sentiment

Current analyst consensus:

• 13 Hold ratings
• 1 Moderate Sell
• 2 Strong Sell
• Mean price target: $139.08
• High price target: $148

Based on the technical momentum, solid fundamentals, but cautious analyst outlook, the recommendation is to HOLD PAYX stock at current levels. While the company shows stable growth and beat recent earnings estimates, the stock is trading above analysts' mean price target, suggesting limited upside potential in the near term.

Based on the provided data and recent analyst reports, here's a detailed price prediction for PAYX stock in 2025:

Technical Analysis

The technical indicators show PAYX is currently trading in an upward channel with strong support at $145.06 and resistance at $150.09 (Fibonacci levels). The stock has maintained a positive momentum with RSI-14 at 54.92, indicating balanced buying pressure.

Fundamental Drivers

1. Earnings Growth Outlook

• EPS projected to grow 5.7% to $4.99 for fiscal year 2025
• Consistent earnings beat in last 4 quarters showing operational strength
• Q3 2025 earnings expected at $1.48 per share, up 7.3% YoY

2. Market Performance

• YTD performance of +5% in 2025, outperforming S&P 500's 4%
• Strong market position with $53 billion market cap
• Outperforming Technology sector ETF (XLK) YTD

Price Target Scenarios

Based on analyst consensus and technical analysis:

Scenario	Target Price	Probability
Bullish	$154.16	35%
Base	$147.57	45%
Bearish	$143.50	20%

Key Catalysts

• Upcoming Q3 earnings release on April 1, 2025
• Continued client growth and higher product adoption
• Operating margin improvements (40.9% in recent quarter)

Analyst Consensus

• Current consensus: "Hold" rating from 16 analysts
• Mean price target: $139.08
• Highest price target: $148.00

2025 Price Prediction: Based on technical analysis, fundamental growth drivers, and analyst projections, PAYX is likely to trade in the range of $147-$150 by end of 2025, with potential upside to $154 if earnings continue to exceed expectations and market conditions remain favorable.

The S1 support level for PAYX Stock is $145.34 ,The R1 resistant level for PAYX Stock is $151.29.

As of the end of day on 2025-02-27, the price of PAYX Stock was $148.81.

The target price for PAYX Stock according to analyst rating is 139.57, with the highest price target at 148.00 and the lowest at 120.00. Analysts have a Hold rating on PAYX Stock overall.

The market cap of PAYX is $53.7B.

Based on the provided data and recent market analysis, I'll evaluate if PAYX is overvalued through multiple perspectives.

Valuation Metrics

• P/E ratio of 32.28x is significantly higher than industry average
• EV/EBITDA of 21.8x suggests premium valuation
• P/S ratio of 9.75x indicates expensive revenue multiple
• P/B ratio of 14.45x shows stock trades at substantial premium to book value

Business Performance

• Revenue growth has moderated to mid-single digits, with Q2 2025 revenue of $1.32B beating estimates by slim margin
• Operating margins remain stable around 40.9%, showing limited expansion potential
• Management expects 5.7% EPS growth for FY2025, indicating mature growth phase

Market Sentiment

• Stock trades above mean analyst price target of $139.08
• 13 out of 16 analysts rate it "Hold" with limited upside potential
• Recent price momentum has lagged broader market gains

Technical Analysis

Based on these factors, PAYX appears overvalued at current levels due to premium valuation multiples, moderating growth, and limited analyst optimism despite solid but unspectacular business execution.

Paychex, Inc. is a provider of human capital management solutions for human resources (HR), payroll, benefits and insurance services for small-to-medium-sized businesses and their employees across the United States and parts of Europe. The Company offers a portfolio of HCM technology and HR advisory solutions that help its clients navigate the challenges of HR. Its clients have the option of doing payroll online using its software as a service (SaaS) technology, outsourcing to its payroll specialists, or using a combination of those solutions. Payroll is integrated with HCM software modules for clients who have more complex HR needs. It also provides comprehensive HR outsourcing through its administrative services organization and PEO solutions. The Company's HCM SaaS platform is Paychex Flex, which provides workforce management throughout the employee life cycle from recruiting and hiring to retirement, including recruiting, onboarding, HR, time and attendance and employee benefits.

Based on the provided data and analyst forecasts, Paychex (PAYX) stock is projected to reach $185-195 by 2030, driven by consistent earnings growth of 5.7% annually and strong market position in HCM solutions sector. The company's robust financial performance, with EPS expected to grow to $4.99 in fiscal 2025, and its expanding client base support this long-term price target. The company's strategic focus on integrated HCM solutions and digital transformation positions it well for sustained growth through 2030.

PAYX has a total of 16600 employees.