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PaychexPAYXSELLJul 10, 2015Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
Since 1995, has returned 14% annually. Margins have been growing as they've grown beyond payroll processing among small/medium-sized businesses, which offer growth. They benefitted from higher interest rates. He continues to buy it, though it's currently expensive. They project 6-8% revenue growth but will be hit if the economic weakens or rates decline.
He prefers ADP (ADP-Q). Both names have had a real run-up since the US unemployment situation started to improve. This one is basically 65% payroll and 35% HR services. Feels that most of the juice is out of the stock. PE is 26-30 times. Although the US economy is improving, the turning of the corner from recession/unemployment coming down has already taken place.