NEW YORK (TheStreet) - Payroll processing firm Paychex (PAYX) reports quarterly results for the period ending in May after the closing bell on Tuesday. Analysts expect the company to report earnings per share of 40 cents.
Since Paychex caters its payroll processing and human resources services to small and medium-size companies, a better-than-expected earnings report would indicate that the economy is on track to reverse the negative GDP growth reported for the first quarter.
If the economy is snapping back, that could bode well for Constellation Brands (STZ), which reports its quarterly results for the period ending in May before the opening bell on Wednesday. This stock is one of Jim Cramer's latest stock picks.
Analysts expect the company to report earnings per share of 92 cents. An earnings beat would indicate that consumers may have stocked up on beer, wine and spirits for Friday's Independence Day celebrations.
Improvements in a payroll processing firm could just lead to increased spending in the liquor stores.
Let's take a look at the stock profiles:
Paychex ($41.21) began 2014 setting a multiyear intraday high at $45.95 on Jan. 7, then traded as low as $39.86 on Feb. 4, which was below its 200-day simple moving average. The stock moved back above this key average the next day, trading as high as $43.56 on March 27. Paychex has been below its 200-day now at $41.98 since April 7. The stock ended 2013 at $45.53, so it has a year-to-date loss of 9.5%.