Thursday, June 27, 2013

Investopedia: Paychex Still Muddling Through

It has been about a year since I last wrote on Paychex (Nasdaq:PAYX). Back in 2012, I suggested that the Fed's actions to stimulate the economy weren't going to have a tremendous impact on employment, nor lead to a big turnaround in Paychex's fortunes. A year later that prediction seems to have worked out, as the company continues to muddle through a weak payroll growth environment in its core small/medium-sized business (SMB) market. While efforts to build up the HR services side of the business should pay off, and payroll will recover at some point, it still would seem that the Street is much too willing to price a strong recovery into these shares.

Please read the full piece here:
http://www.investopedia.com/stock-analysis/062713/paychex-still-muddling-through-payx-intu-orcl-sap.aspx

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