Recent Weakness Makes Paychex A Major Opportunity
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Treading SoftlyInvesting GroupFollow5ShareSavePlay(16min)Comment(1)SummaryPaychex is reaffirmed as a 'Buy,' with accelerating organic growth and strong execution post-Paycor acquisition.PAYX’s Q3 2026 revenue grew 19.9% YoY, driven by Paycor synergies and robust cross-selling, with organic growth ramping to 6%.Shares trade at a steep 36% discount to fair value, with a forward P/E of 15.9 vs. a revised fair value multiple of 25.The company offers a secure 4.6% forward dividend yield, high payout sustainability, and a healthy balance sheet supporting continued dividend growth.Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More »Teo Wei Keong/iStock via Getty Images Co-authored by Kody's Dividends The narrative surrounding "AI disruption" has reached a fever pitch in 2026, often leading the market to overlook the value of the "human-in-the-loop" expertise. Many investors have fled legacy service providers, favoring AI-native startups, with the bet thatThis article was written byTreading Softly4.45K FollowersFollowScott Kaufman, aka Treading Softly, learned about investing firsthand from over a decade of financial sector experience. He is the lead analyst for Dividend Kings providing actionable insight into high quality dividend growing and undervalued opportunities. His focus is to see a bountiful harvest of cash dividends and strong capital gains, providing a robust total return.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PAYX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings teamSeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.