Big Money Backs Strong Paycom Business

PAYC provides payroll and human capital management software to U.S. businesses with 50 to 10,000 employees. It aims to help companies from recruitment to retirement. Along with payroll capabilities, Paycom offers solutions for time and attendance, talent management, and benefits. Some of the company’s nearly 20,000 customers have seen big drops in payroll processing time due to automated offerings. And PAYC just opened three new sales offices, so it’s looking to grow.

Earnings-wise, PAYC’s fourth-quarter 2024 report showed quarterly revenue of $494 million, which is a 14% jump, and annual revenue of nearly $1.9 billion, which is an 11% increase over 2023. Its full-year recurring revenue was nearly $1.8 billion, which is also an 11% increase over 2023. The company expects recurring revenue to grow 9% this year, based on its long practice of onboarding new, higher revenue clients.

Even after the recent carnage, PAYC shares are up 6% this year – and they could rise more. MAPsignals data shows how Big Money investors are once again betting heavily on the forward picture of the stock.

Big Money Back for Paycom Shares

Institutional volumes reveal plenty. In the last year, PAYC has some enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PAYC shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Paycom.

Paycom Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PAYC has had strong sales and earnings growth:

• 3-year sales growth rate (+21.5%)
• 3-year EPS growth rate (+38.8%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +11.4%.

Now it makes sense why the stock has been generating Big Money interest again. PAYC has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Paycom has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when PAYC was a top pick…positioning itself well for the future:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Paycom Price Prediction

The PAYC revival isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds long positions in PAYC in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.