Paycom (PAYC) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Paycom Software (PAYC) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to significant price movements when estimates are revised [3]. Paycom's Earnings Outlook - The upgrade reflects an improvement in Paycom's underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2025, Paycom is projected to earn $8.96 per share, with a 4.5% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9].