I wrote this in my end of the month summary so it’s not new news:
I sold off PAYC during the month, as it was very high PE
PAYC just reported adjusted earnings of 8 cents, up from 5 cents. The reports trumpeted that it beat estimates by a penny, but 8 cents doesn’t cut it for a company selling at $39.00. On top of that the last three sequential quarters of adjusted earnings were 12 cents, 10 cents, and now 8 cents! And it’s not “seasonal”. Last year they made 3 cents, 4 cents, and 5 cents in the same three quarters. I’d be very cautious about this no matter how good the “story”.
I know that some people on the board really like PAYC, for some good reasons too, so this is just my opinion.
Saul