Is Wall Street Bullish or Bearish on Paycom Software Stock?

Core Viewpoint - Paycom Software, Inc. is experiencing challenges in stock performance despite solid revenue growth and a strong market position in the cloud-based human capital management sector [1][4]. Company Overview - Paycom Software, Inc. has a market capitalization of $9.3 billion and provides a comprehensive suite of HR solutions, including payroll and talent management, designed to streamline workflows for businesses of all sizes across the U.S. [1]. Stock Performance - Over the past 52 weeks, Paycom's stock has declined by 26.1%, while the S&P 500 Index has increased by 13.2%. Year-to-date, Paycom shares are down 19%, compared to a 14.5% gain for the S&P 500 [2]. - Despite the overall decline, Paycom's shares have outperformed the Industrial Select Sector SPDR Fund's return of 8.7% over the same period [3]. Financial Results - In the third quarter, Paycom reported revenue of $493.3 million, reflecting a year-over-year increase of 9.1%, driven by client additions and demand for its HR and payroll automation platform [4]. - Adjusted earnings per share (EPS) for the quarter were $1.94, slightly missing estimates due to higher operating expenses, but overall profitability remained strong [4]. - For the full fiscal year 2025, Paycom anticipates revenue between $2.05 billion and $2.06 billion, indicating approximately 9% year-over-year growth at the midpoint [4]. Analyst Expectations - Analysts project a 12.1% year-over-year decrease in EPS for the fiscal year ending December 2025, estimating it at $7.58 [5]. - The consensus rating among 20 analysts is a "Hold," with five "Strong Buy" ratings, 14 "Holds," and one "Strong Sell" [5]. - The current consensus has shifted to a more bearish outlook compared to a month ago, when the stock had a "Moderate Buy" rating [6].