Paycom Software (PAYC) Hits New Lifetime High

Trade-Ideas LLC identified Paycom Software (PAYC) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Paycom Software

(

PAYC

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Paycom Software as such a stock due to the following factors:

  • PAYC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $34.0 million.
  • PAYC has traded 137,290 shares today.
  • PAYC is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in PAYC with the Ticky from Trade-Ideas. See the FREE profile for PAYC NOW at Trade-Ideas

More details on PAYC:

Paycom Software, Inc. offers cloud-based human capital management (HCM) software solutions delivered as Software-as-a-Service in the United States. It provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. PAYC has a PE ratio of 123. Currently there are 5 analysts that rate Paycom Software a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Paycom Software has been 735,800 shares per day over the past 30 days. Paycom Software has a market cap of $2.2 billion and is part of the technology sector and computer software & services industry. Shares are up 48% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Paycom Software as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including premium valuation and generally higher debt management risk.

Highlights from the ratings report include:

  • Compared to other companies in the Software industry and the overall market, PAYCOM SOFTWARE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The revenue growth greatly exceeded the industry average of 18.8%. Since the same quarter one year prior, revenues rose by 47.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 1100.00% and other important driving factors, this stock has surged by 131.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Despite currently having a low debt-to-equity ratio of 0.30, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.08 is very low and demonstrates very weak liquidity.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...