Paylocity (PCTY) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Paylocity (PCTY) - Paylocity currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] - Over the past week, PCTY shares increased by 2.91%, outperforming the Zacks Internet - Software industry, which rose by 2.3% [6] - In the last three months, PCTY shares have risen by 13.39%, and over the past year, they are up 29.19%, compared to the S&P 500's increases of 2.93% and 28.08%, respectively [7] - The average 20-day trading volume for PCTY is 311,620 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for PCTY have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $6.47 to$6.53 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating a positive earnings outlook [10] Conclusion - Considering the positive momentum indicators and earnings outlook, PCTY is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]