Paychex (PAYX)

They just delivered a top and bottom line beat. Is the number one payment processor for small-mid-sized businesses.

Shares fell today 6% on earnings, which he liked, including their forecast, but Wall Street didn't. Usually, their shares fall after reporting which makes this another buying opportunity.

Since 1995, has returned 14% annually. Margins have been growing as they've grown beyond payroll processing among small/medium-sized businesses, which offer growth. They benefitted from higher interest rates. He continues to buy it, though it's currently expensive. They project 6-8% revenue growth but will be hit if the economic weakens or rates decline.

They report Thursday. Pays a terrific dividend, but unfairly this name attracts analyst downgrades even when it does well.

A growthier name in the space. Likes the space, but pay attention to what you're paying for growth. Economic weakening will impact it. He's seeing better opportunities in larger-cap, software names like MSFT and AAPL.

They process payrolls for small/medium businesses. They just reported solid top and bottom line beats and raised guidance for this fiscal year. It pulled back hard earlier this quarter, but rebounded hard today.