This summary was created by AI, based on 2 opinions in the last 12 months.
Paycom (PAYC-N) is considered a new position with a stock price off all-time highs, presenting a buying opportunity. Experts note the potential for earnings growth of around 20% and a sticky, recurring revenue model with low customer churn. However, there are concerns about the stock sinking 23% in May, indicating it's in a bear market and a crowded space for human capital management software.
Paycom sank 23% in May. It's a human capital management software play, which is in a bear market and a crowded space.
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.
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.
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
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.
Paycom was recommended as a Top Pick by on . Read the latest stock experts ratings for Paycom.
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.
2 stock analysts on Stockchase covered Paycom In the last year. It is a trending stock that is worth watching.
On 2024-11-14, Paycom (PAYC-N) stock closed at a price of $224.555.
New position that recently bought. Stock price off all time highs, which has presented a buying opportunity. Typically able to grow earnings ~20%. Very sticky revenue model that is recurring monthly. Churn of customer base also very low. Looking to buy more shares.