Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
Paycom Software, Inc. is upgraded to Buy after a 46% share price decline and improved profitability, now trading at a low 11x forward P/E. PAYC's Q4 results showed 10% revenue growth, expanding margins, and robust cash generation, despite a slowdown in top-line growth guidance for 2026. Flagship products like Beti and the new AI offering IWant are driving record 91% revenue retention and enhancing long-term profitability.
Paycom Software, Inc. (PAYC) Q4 2025 Earnings Call Transcript
Paycom Software (PAYC) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $2.32 per share a year ago.
PAYC heads into Q4 earnings with steady EPS and revenue growth expectations, driven by AI-powered products and recurring revenue strength.
Paycom (PAYC) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Paycom Software (PAYC) is undervalued relative to HCM peers, trading at a forward P/E of 19 versus higher multiples for ADP, PAYX, and PCTY. PAYC's recent underperformance stems from AI-related sentiment, a slowing US labor market, and revenue headwinds from its BETI rollout. Revenue growth could reaccelerate in 2026, with Q4/2025 results and new guidance potentially serving as a catalyst for rerating.
Paycom Software has dropped over 70% from its 2021 peak but remains profitable in a large, growing HR software market. PAYC trades at compressed valuations at 9.7x EV/EBITDA and 16x forward earnings. Significant buybacks (up to 17% of market cap) and high operating efficiency could support shares even if growth remains modest.
Paycom Software, Inc. (PAYC) Presents at Barclays 23rd Annual Global Technology Conference Transcript
Paycom (PAYC) reported earnings 30 days ago. What's next for the stock?
Paycom reported strong revenue growth in their recent Q3 earnings, rising more than 9% compared to Q3 2024. Paycom made an investment in AI that was recently rolled out, an sets itself apart from competitors. The stock has fluctuated significantly this year, and now could be an opportune time for value investors.