(PAYC) Paycom Soft - Ratings and Ratios

Paycom Software, Inc. (NYSE: PAYC) is a leading provider of cloud-based human capital management (HCM) solutions, delivering software-as-a-service (SaaS) to small and mid-sized businesses across the United States. The companys HCM platform integrates a comprehensive suite of tools designed to streamline the entire employment lifecycle, from recruitment to retirement. Its offerings include talent acquisition, time and labor management, payroll applications, talent management, and compliance solutions. The platform also features mobile-friendly applications for on-the-go management, direct data exchange tools, and compliance tracking for workforce health and safety. Founded in 1998 and headquartered in Oklahoma City, Oklahoma, Paycom has established itself as a key player in the HCM space, emphasizing innovation and user-friendly design.

As of the latest data, PAYC is trading at $211.52, with a 20-day average volume of 546,331 shares. The stock is currently above its 200-day moving average of $192.90, indicating long-term bullish momentum, but below its 20-day and 50-day moving averages of $214.09 and $213.65, respectively, suggesting near-term consolidation. The average true range (ATR) of $9.30 reflects moderate volatility.

From a fundamental perspective, Paycom boasts a market capitalization of $12.27 billion, with a trailing P/E ratio of 24.32 and a forward P/E of 24.94. The companys price-to-book (P/B) ratio stands at 7.71, while its price-to-sales (P/S) ratio is 6.52. Return on equity (RoE) is a robust 31.86%, underscoring strong profitability and efficient use of shareholder capital.

Resistance levels are at $228.8 and $217.7, while key support levels are at $205.6, $165.5, $156.4, and $142.7. These levels are critical for identifying potential buy or sell signals in the near term.

3-Month Forecast - Technical Outlook: - The stock is likely to test the $217.7 resistance level in the short term, with potential breakout above this level signaling renewed upward momentum. - If the price dips below $205.6, it may retest the $192.90 SMA200, which could act as a strong support zone. - The ATR of $9.30 suggests that price fluctuations may remain moderate, with potential sideways trading in the near term. - Fundamental Outlook: - Paycoms strong RoE of 31.86% and stable cash flow position it well for continued growth in the HCM sector. - The forward P/E ratio of 24.94 indicates that investors expect sustained earnings growth, though the current valuation may limit upside potential in the near term. - The companys focus on compliance and workforce management solutions positions it to benefit from increasing regulatory demands and evolving workplace dynamics. This forecast integrates both technical and fundamental analysis, providing a balanced view of PAYCs potential performance over the next quarter.