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“People Didn’t Like” Paychex (PAYX)’s Quarter

We recently published 9 Stocks Jim Cramer Talked About.  Paychex, Inc. (NASDAQ:PAYX) is one of the stocks on Jim Cramer talked about.

Paychex, Inc. (NASDAQ:PAYX)’s shares are down 17% year-to-date and has seen several price target cuts recently. The firm reported its second-quarter earnings on December 19th and posted $1.56 billion in revenue to slightly miss analyst estimates of $1.57 billion. Ahead of the earnings, BMO Capital had cut Paychex, Inc. (NASDAQ:PAYX)’s share price target to $121 from $140 and kept a Market Perform rating on the shares. It commented that weakness in the small and medium business market as a factor driving the change and added that the upcoming earnings could see good cost execution. Paychex, Inc. (NASDAQ:PAYX)”s second fiscal quarter earnings per share sat at $1.26 per share and beat analyst estimates of $1.23. Cramer discussed the firm in his December 19th Mad Money appearance and commented that he uses the company as a proxy for employment figures. The CNBC TV host added that Paychex, Inc. (NASDAQ:PAYX)’s earnings left analysts worried about the firm’s management solutions business and full-year revenue outlook. He didn’t hold back on the analysts in this appearance either:

everything possible/Shutterstock.com

“Paychex quarter, people didn’t like it, I’ve got them on tonight, the analysts have historically really trashed this company.”

While we acknowledge the risk and potential of PAYX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PAYX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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