Paychex, Inc. is a provider of human capital management solutions for human resources (HR), payroll, benefits and insurance services for small-to-medium-sized businesses and their employees across the U.S. and parts of Europe. Co. offers a portfolio of HCM technology and HR advisory solutions that help its clients navigate the challenges of HR. Its clients have the option of doing payroll online using its software as a service (SaaS) technology, outsourcing to its payroll specialists, or using a combination of those solutions. Payroll is integrated with HCM software modules for clients who have more complex HR needs.
When researching a stock like Paychex, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from PAYX Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for PAYX stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the PAYX 200 day moving average ("PAYX 200 DMA"), while one of the most popular "shorter look-backs" is the PAYX 50 day moving average ("PAYX 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Paychex. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the PAYX 200 DMA and the PAYX 50 DMA, we get a moving average convergence divergence indicator ("PAYX MACD"). The PAYX MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis