Guggenheim Bullish on Paycom Software (PAYC) Despite Weak Share Price Performance

Paycom Software, Inc. (NYSE:PAYC) is included in our list of the 14 oversold value stocks to invest in right now.

Guggenheim Bullish on Paycom Software (PAYC) Despite Weak Share Price Performance

On February 3, 2026, Paycom Software, Inc. (NYSE:PAYC) traded at its 52-week low of $124.08, down significantly from its 52-week high of $267.76. Currently trading at $131.41, the stock is just 7% above its 52-week low.

Amid weak investor momentum, Paycom Software, Inc. (NYSE:PAYC) received Guggenheim’s attention on January 30, 2026. The firm reduced its price target from $245 to $210, reiterating its ‘Buy’ rating. The firm’s bullish sentiment reflects expectations for Recurring and Other revenue to grow approximately 10% in 2026. Meanwhile, the firm’s revised target reflects a valuation adjustment relative to HCM peers ahead of the fourth-quarter earnings release on February 11.

On the previous day, Cantor Fitzgerald revisited Paycom Software, Inc. (NYSE:PAYC), reducing its target from $170 to $135, while reiterating a ‘Neutral’ rating. Ahead of Q4 results, the firm outlined its expectations, projecting in-line Q4 revenue and a slight EBITDA beat. While citing 2026 guidance as a key focus point, the firm noted subdued sentiment in the payroll sector. However, the analyst was positive on the company’s long-term HCM opportunity and underlying product strength.

Paycom Software, Inc. (NYSE:PAYC) delivers cloud-based human capital management SaaS solutions. The firm’s services cover the full employment lifecycle.

While we acknowledge the potential of PAYC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAYC and that has 100x upside potential, check out our report about this cheapest AI stock.

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