6.23 (3.45%) 1d

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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Experts are divided on Paycom's future prospects. While some believe that the company is well-run with good fundamentals and a sticky software, others are concerned about the impact of its Beti product on services revenue. The stock's significant decline following its earnings release reflects the uncertainty surrounding its performance in the near future. Analysts believe that management's ability to address the challenges posed by Beti will be crucial for the stock's future trajectory.

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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $1.77 beat estimates of $1.61 and revenues of $406M missed estimates of $411.15M. PAYC shares fell significantly following its earnings release, after weaker-than-expected Q3 revenue and a soft Q4 guidance. Analysts noted 'Beti cannibalization' as their reasons for downgrading the stock. Beti is the company's software that allows employees to do their own payroll and are guided to find and fix errors before payroll submission. Beti is leading customers to spend less on services and unscheduled payroll runs, negatively impacting monetization opportunities for PAYC.  

It is a well-run company and has good fundamentals. Software is sticky, and if customers are finding its Beti product useful, then it may allow for growth in new clients, while being partially offset by the cannibalization factors. It trades at a historically cheap valuation (20.3X forward earnings), but much revolves around expectations for the future. We think long-term it can perform well, but unless management can talk to the eroding services revenue resulting from Beti, this may trade sideways for a few quarters or more. We think it can come back from this large decline.
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Fintechs are out of fashion, especially those involved in employment. These stocks aren't working now.

Paycheque companies are doing well. PAYC does payroll services. PAYC is okay and has pulled back. You can buy it.

The chart looks great and they have been a consistent earnings beater. He likes the fin-tech space, but this is a smaller player. They also do data analytics. Over 90% of the date on servers globally has been put there in the last 18-24 months. It is not cheap with a 30-40 PE.

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Paycom(PAYC-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 2

Stockchase rating for Paycom is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Paycom(PAYC-N) Frequently Asked Questions

What is Paycom stock symbol?

Paycom is a American stock, trading under the symbol PAYC-N on the New York Stock Exchange (PAYC). It is usually referred to as NYSE:PAYC or PAYC-N

Is Paycom a buy or a sell?

In the last year, 2 stock analysts published opinions about PAYC-N. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Paycom.

Is Paycom a good investment or a top pick?

Paycom was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Paycom.

Why is Paycom stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Paycom worth watching?

2 stock analysts on Stockchase covered Paycom In the last year. It is a trending stock that is worth watching.

What is Paycom stock price?

On 2024-05-23, Paycom (PAYC-N) stock closed at a price of $174.44.