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Why Paychex Stock Fell on Tuesday
['Daniel Sparks']
The Motley Fool
Shares of Paychex (PAYX -1.40%) fell as much as 7.4% on Tuesday morning but were down about 4% as of 11 a.m.
Earnings, guidance, and what may have spooked investorsTotal revenue rose 17% year over year to about $1.54 billion, roughly in line with the Wall Street consensus.
Adjusted earnings per share (EPS) came in at $1.22, slightly better than the consensus forecast for the key profitability metric.
A fair valuationEven after the drop and the latest earnings are taken into account, Paychex trades around the mid-20s on a trailing price-to-earnings multiple.
Overall, though, Paychex is a quality franchise, with a fair-ish multiple.