Shares of Paychex (PAYX) are climbing Tuesday, up about 3.5% and within a stone's throw of new 52-week highs. The company beat on earnings per share and revenue expectations. Management also raised its full-year guidance for revenue and operating income.

The company reported a "magnificent" result and the guidance raise was important as well, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.

Cramer also took to a recent research report from the analysts at Citi, who issued a sell rating on Sept. 29. The analyst argued that shares of Paychex remain overvalued and as a result, assigned a price target of $53. Sometimes sell ratings don't work out very well and this is a very good example of that, he reasoned.

Now Paychex is off to the races, he said, joking that perhaps the research report would now be best served as kindling for a fire. "It's got to be good for something," Cramer added.

Many thought Paychex would be a huge winner under the new White House administration. Higher interest rates, a stronger economy and an improved employment situation all benefit Paychex and its bottom line. However, shares have not traded the way many thought, nearly hitting a 52-week low in mid-August.

Shares are now up 7.5% on the year and will perhaps continue higher, as it now closes in on new annual highs. As many investors can tell, it's had a tight trading range over the past 12 months.

Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, reminded viewers that he will have CEO Martin Mucci on his "Mad Money" show Tuesday night.

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At the time of publication, Cramer's Action Alerts PLUS had no position in any companies mentioned.

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