61.87 +1.62 (+2.62%) Sell

Want to invest in PCTY? Consider as it is looking better than most other alternatives

13 min read

PAYLOCITY HOLDING CORP delivered good returns on Tuesday. It grew by +2.62% to close at 61.87. It is currently trading -27% below it's 52 week high of 85.12.

[Themes containing PCTY]

PCTY showed a strong down trend over the last 3 months. During this period PCTY returned -21.87% and saw a maximum drawdown of -28.24%. There were 2 short signals during this period that returned a cumulative of +11.73% to investors.


PCTY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 14 days, PCTY outperformed the SP500 index on 54% days.

During the last three months PCTY was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +5.58%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -7.37%) was on Monday, 19 Nov, 2018. There was initially a bearish trend during this period which started on 4 Oct, 2018 and went on till 11 Oct, 2018. The trend delivered -18.44% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +6.31% to investors.

On monthly basis, PCTY delivered profits in more months over the last year, than losses. PCTY delivered profits less regularly than SP500 index. PCTY significantly outperformed SP500 index in Aug 2018, when it returned +36.97% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. PCTY had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both PCTY and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.
-- Benjamin Franklin

PCTY is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in PCTY's volatility from 27 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that PCTY has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than PCTY. Therefore, SP500 must receive a lower allocation than PCTY in your portfolio. SP500 index usually has shorter drawdown period than PCTY.

On a general note (since you are interested in PCTY), three small cap instruments that deserve special mention are ZBRA, AAXN and BURL. They have all outperformed the market and must be closely watched for investment opportunities.

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