Paychex: Moderate Growth, Better Price, Still A Buy

Paychex (PAYX) remains a Buy, trading at a significant discount to fair value with a 4% yield and solid growth prospects. Q4 2026 saw 12% revenue growth, 11% EPS growth, and a 70 bps margin expansion, driven by Paycor synergies and organic gains. FY27 guidance calls for 5-6% revenue growth, 8% EPS growth, and a 44% operating margin, with PEO segment expected to outpace overall growth.

I previously covered Paychex ( PAYX ) last year, and rated the stock a Buy following the acquisition of Paycor that was completed in April 2025. The rating was based on strong organic growth, coupled