Bubble or no bubble, this is the best stock for AI exposure: analyst
Paychex Inc.'s stock reached a 52-week low of $109.98, reflecting a challenging year for the company. Over the past 12 months, the stock has experienced a significant decline, with a 1-year total return of -19.62% and a steeper 27.94% drop over the past six months. Despite these headwinds, InvestingPro analysis indicates the stock is trading below its Fair Value, suggesting potential undervaluation. This downturn comes amid broader market fluctuations and specific challenges faced by Paychex in its industry. The new 52-week low underscores the pressures on the company as it navigates an evolving economic landscape. Investors are closely monitoring Paychex's strategies to regain momentum and address the factors contributing to its current valuation. Worth noting is the company's impressive 72.83% gross profit margin and its 38-year track record of maintaining dividend payments, currently yielding 3.91%. InvestingPro identifies several additional strengths, including an RSI suggesting the stock is in oversold territory. Discover 10+ more exclusive ProTips and comprehensive analysis in the Pro Research Report, available for 1,400+ top US stocks.
In other recent news, Paychex, Inc. announced a regular quarterly cash dividend of $1.08 per share, payable on November 26, 2025, to shareholders of record as of November 7, 2025. The announcement follows Paychex's fiscal first-quarter results, which demonstrated a 3.5% organic revenue growth and 5% EPS growth. Despite these results, analysts have adjusted their expectations for the company. TD Cowen lowered its price target for Paychex to $126 from $140, maintaining a Hold rating, noting that the company's performance was largely as expected. Stifel also reduced its price target to $137 from $142, citing integration challenges while maintaining a Hold rating. RBC Capital reiterated its Sector Perform rating with a price target of $150, pointing out that Paychex's PEO and Insurance Solutions revenues fell short of expectations due to weaknesses in the Insurance Solutions segment. Additionally, Paychex held its 2025 Annual Meeting of Stockholders, where all ten director nominees were elected to serve a one-year term.
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