Shares of payroll and human resources software provider, Paychex (NASDAQ:PAYX) fell 6.9% in the morning session after the company reported second-quarter results, with revenue and operating profit falling below Wall Street's expectations. Free cash flow also missed and declined sequentially. In light of the underwhelming performance, the company tried to provide some reassuring commentary, saying that "the macro-economic environment remains stable for small and mid-sized businesses, who continue to face challenges in both the cost of and access to growth capital; and finding quality talent in the current labor market." Overall, it was a weaker quarter for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Paychex? Access our full analysis report here, it's free.
What is the market telling us:
Paychex's shares are not very volatile than the market average and over the last year have had only 1 moves greater than 5%.
Paychex is up 4.5% since the beginning of the year, and at $121.04 per share it is trading close to its 52-week high of $128.79 from December 2023. Investors who bought $1,000 worth of Paychex's shares 5 years ago would now be looking at an investment worth $1,895.
Do you want to know what moves the stocks you care about? Add them to your StockStory watchlist and every time a stock we cover moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.