Is Paycom Software Stock Underperforming the S&P 500?

Company Overview - Paycom Software, Inc. (PAYC) is a U.S.-based provider of cloud-based human capital management (HCM) solutions with a market cap of $9.4 billion, focusing on small to mid-sized businesses [1] - The company offers an integrated platform managing the entire employee life cycle, including recruitment, onboarding, payroll, benefits, and retirement [1][2] Stock Performance - Shares of Paycom have fallen 37.6% from their 52-week high of $267.76 and decreased 22.2% over the past three months, underperforming the S&P 500 Index, which gained 1.8% in the same period [3] - Year-to-date, PAYC stock is down 18.5%, while the S&P 500 has risen by 14.3% [4] - Over the past 52 weeks, Paycom shares have dropped 28.3%, contrasting with the S&P 500's return of 11.1% [4] Financial Performance - In Q3 2025, Paycom reported revenue of $493.3 million, exceeding expectations, but shares fell 10.7% the following day due to an adjusted EPS of $1.94 that missed estimates [5] - There was a significant decline in cash and cash equivalents, dropping to $375 million from $532.2 million in the prior quarter [5] Analyst Sentiment - Despite the stock's weak performance, analysts maintain a moderately optimistic outlook with a consensus rating of "Moderate Buy" from 21 analysts [6] - The mean price target for PAYC is $209.12, indicating a potential upside of 25.2% from current levels [6]