/Paycom%20Software%20Inc%20logo%20on%20laptop-by%20monticello%20via%20Shutterstock.jpg)
Paycom Software, Inc. (PAYC), headquartered in Oklahoma City, Oklahoma, provides cloud-based human capital management software solutions. With a market cap of $10.09 billion, Paycom delivers innovative, user-friendly software to help businesses streamline payroll and HR processes.
Companies valued at $10 billion or more are classified as "large-cap" stocks. Paycom Software exemplifies this with its robust market position and steady human capital management software industry growth.
PAYC shares are trading 40.1% below their 52-week high of $279.96, which they hit on Oct. 10, 2023. The stock has gained 18.6% over the past three months, outperforming the broader S&P 500 Index ($SPX), which has gained 4.6% over the same time frame.
In the longer term, PAYC is down 18.8% on a YTD basis, and the shares have declined 35% over the past 52 weeks. In comparison, the SPX has gained 20% in 2024 and rallied 31.9% over the past year.
To confirm its bullish trend, PAYC has been trading above its 50-day moving average since early September. However, it's trading below the 200-day moving average since early August 2023.
On Jul. 31, PAYC rose marginally after the company released its Q2 earnings report. It reported a second-quarter profit of $68 million, or adjusted earnings of $1.62 per share, exceeding Wall Street's expectations of $1.58 per share. The company posted revenue of $437.5 million, surpassing forecasts of $436.2 million.
Highlighting the contrast in performance, PAYC’s competitor, Workday, Inc. (WDAY), has outperformed the stock. WDAY has gained 5.1% on a YTD basis.
Despite the stock's recent strong price performance, analysts are cautious about PAYC's prospects. The stock has a consensus rating of "Hold" from 19 analysts in coverage. The mean price target is $179.85, suggesting a premium of 7.2% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
