With that in mind, let's take a closer look at Paychex's business, and see what CAPS investors are saying about the stock right now.
Paychex facts
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Headquarters (founded)
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Rochester, N.Y. (1971)
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Market Cap
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$9.81 billion
|
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Industry
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Data Processing and Outsourced Services
|
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TTM Revenue
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$2.11 billion
|
|
Management
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Founder/Chairman Thomas Golisano
President/CEO Jonathan Judge
|
|
TTM Return on Equity
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44.7%
|
|
Dividend Yield
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4.6%
|
|
Competitors
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Automatic Data Processing (Nasdaq: ADP)
Administaff (NYSE: ASF)
|
|
CAPS members bullish on PAYX also bullish on
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General Electric (NYSE: GE)
Johnson & Johnson (NYSE: JNJ)
|
|
CAPS members bearish on PAYX also bearish on
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Citigroup (NYSE: C)
Amazon.com (Nasdaq: AMZN)
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 929 of the 979 members who have rated Paychex --
some 95% -- believe the stock will outperform the S&P 500 going
forward. These bulls include All-Stars MFBriguy and TMFBuck, both of whom are ranked in the top 6% of our community.
Two weeks
ago, MFBriguy noted that Paychex is "doing all the right things during
this recession, investing in their current customer base, going the
extra mile to retain existing business, expanding offerings and asking
for referrals to others who would benefit." Our CAPS member concludes:
"[T]hey getting better and stronger during the downturn and will emerge
with more market share and a great platform for growth."
In a pitch from February, TMFBuck echoes that bullish sentiment:
What a phenomenal company. This is not a macro bet.
I love this company, its margins, and its moat and now the price is
right. Take the dividend and wait until things turn around in the
economy. They also should get a nice boost when/if interest rates
finally go up as they aren't earning much on their float these days.
Sure they will lose some business as unemployment climbs. It will no
doubt get worse than it is today but I think that and more is baked
into this price.
What do you think about Paychex, or any other stock for that matter?
Make your voice heard on Motley Fool CAPS today. More than 130,000
investors are waiting to hear what you have to say. CAPS is 100% free,
so simply click here to get started.
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