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Why Paychex (PAYX) is a Top Growth Stock for the Long-Term

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

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Paychex (PAYX)

Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement, and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.

PAYX boasts a Growth Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 13.8% year-over-year for 2023, while Wall Street anticipates its top line to improve by 8.4%.

One analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $4.29 per share for 2023. PAYX boasts an average earnings surprise of 4.2%.

Looking at cash flow, Paychex is expected to report cash flow growth of 17.7% this year; PAYX has generated cash flow growth of 8.9% over the past three to five years.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, PAYX should be on investors' short lists.

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Paychex, Inc. (PAYX) : Free Stock Analysis Report

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Zacks Investment Research