PCTY Stock Analysis: Buy, Sell, or Hold?

PCTY - Paylocity Holding Corporation Common Stock

SERVICES-PREPACKAGED SOFTWARE
$113.02
1.30 (1.16%) ▲
5d: +5.51%
30d: +12.93%
90d: +10.86%
BUY
MODERATE Confidence
Analysis Updated: May 22, 2026 12:00 AM ET
Earnings: Aug 04, 2026

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: PCTY shows positive signals but monitor for confirmation. Market pricing in 5.3% decline. Moderate conviction.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$176.85
Based on 5.9% avg growth
INTRINSIC VALUE TODAY
$109.81
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 15.3x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: PCTY is currently trading at $113.02, which is considered extended relative to its 30-day fair value range of $101.26 to $110.39. From a valuation perspective, the stock is trading at a discount (Forward PE: 13.0) compared to its historical average (15.3). Remarkably, the market is currently pricing in an annual earnings decline of 5.3% over the next few years. This pessimistic expectation contrasts with the company's recent 27.3% earnings growth, suggesting potential undervaluation if the company simply maintains stability.

Technical Outlook: Technically, PCTY is in a strong downtrend. Immediate support is located at $102.19, while resistance sits at $118.30.

Market Sentiment: PCTY has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $152.95 (+35.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $101.26 - $110.39
Company Quality Score 60/100 (BUY)
Volume Confirmation HIGH
Confidence Score 61.9%

All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (75/100)
  • BULLISH: High volume confirmation
  • BULLISH: Trading 35.3% below Wall St target ($152.95)

Trading Range Analysis

30-Day Trading Range $101.26 - $110.39
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $102.19
Resistance Level $118.30
Current Trend Strong Downtrend
Technical data as of May 22, 2026

Fundamental Context

Forward P/E (Next Year Est.) 12.99
Wall Street Target $152.95 (+35.3%)
Revenue Growth (YoY) 10.5%
Earnings Growth (YoY) 27.3%
Profit Margin 14.9%
Valuation Discount vs History -5.3% cheaper
PE vs Historical 13.0 vs 15.3 CHEAP
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): -5.3% (market-implied from PE analysis)
1-Year Target $107.03 (-5%)
2-Year Target $101.36 (-10%)
3-Year Target $95.99 (-15%)
3-Yr Target (if PE normalizes) (PE: 13→15) $113.08 (0%)
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.0, Growth: 7.7%) $238.79 (+111%)
Base: (SPY PE: 13.0, Growth: 7.7%) $141.03 (+25%)
Bear: (PE: 11.0, Growth: 7.7%) $119.87 (+6%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Trailing PE: 23.87 | Current EPS (TTM): $4.68
Bull Case $228.51 (+102%)
Analyst growth 85.9%, PE expands to 26.3
Base Case $207.74 (+84%)
Market implied 85.9%, PE stable at 23.9
Bear Case $75.97 (-33%)
Severe decline -20.0%, PE contracts to 20.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡 Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 13.0 to 15.3
Stabilization Target: $133.14 (+17.8%)
PE Expansion Potential: +17.8%
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Last updated: May 22, 2026 6:05 PM ET
Data refreshes hourly during market hours. Next update: 7:05 PM
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Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Andrew Cappotelli SELL 69 shares 2025-12-04

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