Investopedia: Will QE3 Give Paychex More Than it Takes Away?
When you're in the business of processing payrolls for small employers, a weak job market is a definite limitation on growth. Paychex (Nasdaq:PAYX)
has been muddling through this period of weak job creation, and now
there is a new Federal Reserve stimulus program specifically targeting
job growth and employment. It's an open question as to whether this
stimulus will succeed, but it's a near-certainty that low rates will
continue to pressure Paychex's ability to wring profits from its float. That sets up Paychex for a high-quality but growth-poor play on improved employment, and an expensive one at that.