March 4 (Bloomberg) — Shares of Paychex Inc. are poised to outpace the broader market as the prospect of higher interest rates and more job creation will buoy the payroll-service provider.

The company generates income from the interest earned on money it holds for clients, a so-called float, so rising Treasuries yields are “pure gravy” to its net income, said David Yucius, who oversees $250 million in assets as president of Aurora Investment Counsel Inc. in Atlanta. Paychex stock has lagged behind the Standard & Poor’s 500 Index, amid a backdrop of low rates and slow job growth for small- to medium-sized business in the past five years, he said.

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