Paycom Grows on Big Money Support

PAYC provides payroll and human capital management software to U.S. businesses with 50 to 10,000 employees, with a goal of helping companies serve employees from recruitment to retirement. Along with payroll, Paycom offers time and attendance, talent management, and benefits solutions. They’re proving popular with customers, including many who were newly onboarded within the last quarter.

On the earnings front, PAYC’s first-quarter 2025 report showed total quarterly revenue of $531 million, which is a 6% increase on a year-over-year basis. Recurring and other revenue hit $500 million, reflecting a 7% rise. PAYC holds $521 million with no debt and returned $21 million to shareholders in the first quarter via dividends along with $5 million in share repurchases (with another roughly $1.5 billion planned). The company guided higher too, calling for an 8% year-over-year gain in annual revenue.

It’s no wonder PAYC shares are up 25% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock.

Big Money Buys Paycom

Institutional volumes reveal plenty. In the last year, PAYC has 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 +10.8%.

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 MoneyFlows. 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 Outlier 20 report multiple times in the last year. The blue bars below show when PAYC was a top pick…sending share values up:

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.

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