5 Best Stocks to Buy on the Dip for Long Term

In this article, we will take a look at the 5 best stocks to buy on the dip for long term. To see more such companies, go directly to 10 Best Stocks to Buy on the Dip for Long Term.

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

Number of Hedge Fund Holders: 40

Paycom Software, Inc. (NYSE:PAYC) ranks 5th in our list of the best buy the dip stocks to buy according to Citi. Paycom Software, Inc. (NYSE:PAYC) has lost about 43% year to date through November 12. Investment firm UBS recently started covering the stock with a Buy rating and a $235 price target.

As of the end of the second quarter of 2023, 40 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Paycom Software, Inc. (NYSE:PAYC). The biggest stakeholder of Paycom Software, Inc. (NYSE:PAYC) was Greg Poole’s Echo Street Capital Management which owns a $347 million stake in the company.

Polen U.S. SMID Company Growth Strategy made the following comment about Paycom Software, Inc. (NYSE:PAYC) in its Q3 2023 investor letter:

“The most significant detractors from the Portfolio’s relative performance in the quarter included Farfetch, Doximity, and Paycom Software, Inc. (NYSE:PAYC).

Paycom, a leading provider of cloud-based human capital management software for small and mid-sized businesses, was another detractor in the period. Despite reporting positive results, the investors seemed concerned about the company’s performance in the year’s second half. As a result, the stock fell by almost 20% on the day of the report. However, the company is committed to investing in its BETI platform to onboard more customers, which may have a short-term negative impact on revenues. But, in the long run, it can benefit the company’s margins. Our positive long-term outlook remains unchanged. We still believe the company has an attractive growth potential in a large addressable market.”