How Is Paycom Software’s Stock Performance Compared to Other Software Stocks?

Company Overview - Paycom Software, Inc. is based in Oklahoma City and has a market capitalization of $12.7 billion, providing a cloud-based human capital management (HCM) platform for small to mid-sized businesses [1][2] - The company's SaaS solution integrates payroll, HR, talent management, and time tracking into a single platform, streamlining operations and eliminating the need for multiple systems [2] Stock Performance - Paycom's stock has experienced an 18.8% decline from its 52-week high of $267.76 and has decreased 7.5% over the past three months, underperforming the SPDR S&P Software & Services ETF's (XSW) 8.6% increase during the same period [3] - Year-to-date, Paycom's stock has risen 6.1%, while XSW has returned 6.7%. Over the past 52 weeks, PAYC shares have increased by 25.2%, slightly trailing the ETF's 26.1% rise [4] Recent Financial Results - On August 6, Paycom reported Q2 2025 results that exceeded expectations, with an adjusted EPS of $2.06 and revenue of $483.6 million. The company raised its full-year revenue guidance to $2.05–$2.06 billion and increased its core profit forecast to $872–$882 million [5] - Investor enthusiasm was bolstered by strong demand for Paycom's new AI-driven features, which enhance HR processes and employee management [5] Analyst Ratings - Paycom stock has a consensus rating of "Moderate Buy" from 19 analysts, with a mean price target of $250.71, indicating a potential upside of 15.3% from current market prices [6]