Here's Why Paycom Software (PAYC) is a Strong Value Stock

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects through projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their positions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have produced an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11] Company Spotlight: Paycom Software - Paycom Software, Inc. is a provider of cloud-based human capital management software, currently rated 3 (Hold) with a VGM Score of B [12] - The company has a forward P/E ratio of 12.01, indicating attractive valuation metrics for value investors [12] - Recent upward revision of earnings estimates for fiscal 2026 has increased the Zacks Consensus Estimate to $9.97 per share, with an average earnings surprise of +5.7% [13]