5 Best Momentum Stocks To Invest In

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

Number of Hedge Fund Holders: 46    

Percentage Gain in Last Month: 28.54%

Paycom Software, Inc. (NYSE: PAYC) is ranked second on our list of 15 best momentum stocks to invest in. The company is based in Oklahoma and provides cloud-based human capital management solutions. In earnings results for the second quarter, posted on August 3, the firm reported earnings per share of $0.97, beating market estimates by $0.13. The revenue over the period was $242 million, up more than 33% compared to the revenue over the same period last year and beating estimates by $9.9 million. 

On August 4, investment advisory Jeffeiries maintained a Buy rating on Paycom Software, Inc. (NYSE: PAYC) stock and raised the price target to $500 from $470, underlining that investors will reward the return to greater than 30% growth. 

At the end of the first quarter of 2021, 46 hedge funds in the database of Insider Monkey held stakes worth $969 million in Paycom Software, Inc. (NYSE: PAYC), up from 35 in the previous quarter worth $748 million.

In its Q4 2020 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Paycom Software, Inc. (NYSE: PAYC) was one of them. Here is what the fund said:

“Paycom is a cloud-based SaaS provider for human capital management. Its simple yet innovative single-instance software initially targeted small and mid-size businesses, and it is being adopted widely. The company has a highly repeatable sales process driven by more than 90% customer retention and a solid track record for selling more to existing customers while acquiring new users. We also like Paycom’s founder/CEO and his impressive track record for value-creating reinvestment. Despite the challenges created by the pandemic, revenue grew 14% in the fourth quarter and for 2020. Additionally, we believe Paycom is well-positioned to benefit from digital transformation as more corporate functions move to the cloud.”