Why Paycom Will Outperform Other HCM Software Stocks

Robert Chan
242 Followers

Summary

  • Paycom’s stock price has pulled back despite strong Q3 numbers and provides an excellent opportunity to add or start building in a position.
  • The company offers an attractive mix of growth, profitability, and cash flow generation its competitors can’t match.
  • While not cheap, the company will benefit from higher employment, digital transformation, and is hedged against future interest rate rises.
  • Paycom is the pick of the bunch of HCM software stocks benefiting from HR digital transformation.

Business network concept. Group of businessperson. Teamwork. Human resources.

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Investment Thesis

Growth stocks are not yet dead, and HCM software may not sound sexy but will transform the way we all work. Paycom (NYSE:PAYC) benefits from HR digital transformation, improving employment levels, and is insulated against

This article was written by

242 Followers
Over 20 years experience investing in multiple asset classes, not married to any investment philosophy as the world is forever changing. Actively researching small and mid-cap stocks considered to have huge growth potential.Believe with access to technology, information, and resources the odds have never been better for retail investors.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PAYC, PCTY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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