In this article, we discuss Motley Fool’s 5 high growth stock picks. If you want to see more stocks in this selection, check out Motley Fool’s High Growth Stock Picks.
5. Paycom Software, Inc. (NYSE:PAYC)
3-year Revenue Growth: 63.4%
Paycom Software, Inc. (NYSE:PAYC) was founded in 1998 and is headquartered in Oklahoma City, Oklahoma. The company provides cloud-based human capital management (HCM) solutions for small to mid-sized companies in the United States. In Q4 2022, Motley Fool Asset Management reported owning 48,442 shares of Paycom Software, Inc. (NYSE:PAYC) worth $9.4 million, representing 1.06% of the total securities.
On February 7, Paycom Software, Inc. (NYSE:PAYC) reported a Q4 non-GAAP EPS of $1.73 and a revenue of $370.6 million, outperforming Wall Street estimates by $0.24 and $3.89 million, respectively. Revenue over the period climbed 30% on a year-over-year basis.
Arvind Ramnani, an analyst at Piper Sandler, increased the firm’s price target on Paycom Software, Inc. (NYSE:PAYC) from $395 to $417 and maintained an Overweight rating on the shares on February 8. According to the analyst’s research note, Paycom Software, Inc. (NYSE:PAYC) reported a slight increase in revenue and a significant EBITDA beat.
According to Insider Monkey’s Q4 data, Paycom Software, Inc. (NYSE:PAYC) was part of 47 hedge fund portfolios, compared to 54 in the prior quarter. Greg Poole’s Echo Street Capital Management held the leading position in the company, with 579,952 shares worth nearly $180 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.”