Paychex Inc. (PAYX): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Paychex ( PAYX) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.6%. By the end of trading, Paychex rose $0.43 (1.2%) to $37.17 on average volume. Throughout the day, 3,190,000 shares of Paychex exchanged hands as compared to its average daily volume of 2,205,100 shares. The stock ranged in a price between $36.67-$37.29 after having opened the day at $36.96 as compared to the previous trading day's close of $36.74. Other companies within the Diversified Services industry that increased today were: ENGlobal Corporation ( ENG), up 17.5%, Fortune Industries ( FFI), up 15.0%, National Research Corporation ( NRCIB), up 13.3% and MGT Capital Investments ( MGT), up 11.2%.
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Paychex, Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses in the United States and Germany. Paychex has a market cap of $13.6 billion and is part of the services sector. The company has a P/E ratio of 23.9, above the S&P 500 P/E ratio of 17.7. Shares are up 20.1% year to date as of the close of trading on Thursday. Currently there is 1 analyst that rates Paychex a buy, 4 analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Paychex as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Education Management Corporation ( EDMC), down 10.2%, VirtualScopics ( VSCP), down 8.8%, ITT Educational Services ( ESI), down 5.6% and Avis Budget Group ( CAR), down 5.3% , were all laggards within the diversified services industry with Global Payments ( GPN) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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