Summary

• Paychex, Inc. is upgraded from hold to buy as valuation becomes attractive following a 20% price decline.
• PAYX remains resilient with high client retention, robust margins, and strategic growth via the Paycor acquisition despite macroeconomic and RTO headwinds.
• Hybrid work trends and recent Fed rate cuts support continued demand for PAYX’s HCM solutions and ease borrowing pressures.
• Technical indicators show overselling, suggesting a potential entry point, while fundamentals and dividend sustainability remain strong.

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It has been nearly four months since my previous coverage on Paychex, Inc. (PAYX). At that time, I thought it already had a good run due to overpricing and bearish signals. True enough, the stock

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**Analyst’s Disclosure:**I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PAYX over the next 72 hours. 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.

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