5 Best Human Resources Stocks To Buy Today

4. Paycom Software, Inc. (NYSE:PAYC)

Number of Hedge Fund Holders: 48

Paycom Software, Inc. (NYSE:PAYC) specializes in providing a digital, cloud-based solution to organizational human resource processes. The company is regarded as one of the first fully online human resource services that provides software to manage the employment lifecycle. This includes managing potential candidates, employee wages, taxation, and performance appraisals. In a research note dated June 28, analyst Matthew Pfau from investment firm William Blair said he expects Paycom Software, Inc. (NYSE:PAYC)’s revenue to grow by 20% over the next few years. The primary reason for this, he commented, is the strength of the software solutions, coupled with the right operational execution of the company.

According to Insider Monkey’s first quarter database, 48 hedge funds were bullish on Paycom Software, Inc. (NYSE:PAYC). Greg Poole’s Echo Street Capital Management held the largest position in the company, comprising 646,879 shares valued at $196.6 million. 

Polen Global SMID Company Growth Strategy made the following comment about Paycom Software, Inc. (NYSE:PAYC) in its Q4 2022 investor letter:

Paycom Software, Inc. (NYSE:PAYC), a high quality, high-growth leader in human capital management and payroll software, was the largest single detractor from returns over the quarter, reversing some of the gains it made in Q3. The company posted strong third-quarter results, with revenue and earnings ahead of expectations. However, concerns over a Global recession and a weaker US employment market weighed heavily on the share price. The company continues to take market share from long-standing incumbents. We believe the business has a long runway with only approximately 5% market share and a growing total addressable market.”