5 Best Stocks to Buy for 2022 According to Analysts

In this article, we discuss the 5 best stocks to buy for 2022 according to analysts. If you want to read our detailed analysis of these stocks, go directly to the 15 Best Stocks to Buy for 2022 According to Analysts.

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

Number of Hedge Fund Holders: 40 

Paycom Software, Inc. (NYSE:PAYC) operates as a cloud-based human capital management solutions provider. Analysts view the stock as the top pick from among a bunch of digital human resource firms because of profitability, cash flow generation, and future growth prospects given the rapid digitization of the business world. 

Needham analyst Ryan MacDonald recently raised the price target on Paycom Software, Inc. (NYSE:PAYC) stock to $640 from $495 and kept a Buy rating, underlining that new bookings growth was driving upside for the firm. 

At the end of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in Paycom Software, Inc. (NYSE:PAYC).

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.”