Alight, Inc. (NYSE:ALIT) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds. Alight (ALIT) Faces Sharp Price Target Cut from BofA on Weak Q1 Forecast Photo by Annie Spratt on Unsplash On February 23, BofA lowered its price recommendation on Alight, Inc. (NYSE:ALIT) to 50c from $1.40. The firm reiterated an Underperform rating on the shares. In a post-earnings note, the analyst said the “biggest surprise and negative takeaway” was the company’s weak Q1 revenue guidan ...

Core Insights - Paychex, Inc. (NASDAQ:PAYX) is highlighted as one of the 12 dividend stocks with significant insider buying activity [1] Insider Transactions - On February 5, 2026, two directors of Paychex, Joseph Doody and Tom Bonadio, each purchased 1,000 shares of the company's stock, valued at $98,760 and $98,490 respectively [2] Analyst Ratings - UBS analyst Kevin McVeigh reiterated a Hold rating on Paychex with a price target of $110 on February 2, 2026. William Blair analyst Andrew Nicholas also maintained a Hold rating on February 10, 2026 [3] Stock Repurchase and Dividend Announcement - On January 16, 2026, Paychex's Board of Directors approved a stock repurchase program of $1 billion, replacing the previous authorization of $400 million. Additionally, a quarterly cash dividend of $1.08 per share was declared, payable on February 27, 2026, to shareholders of record as of January 28, 2026 [4] Company Overview - Paychex, Inc., headquartered in New York, is a leading provider of human capital management solutions for small to medium-sized businesses and has been in operation since 1971 [5]

Core Viewpoint - Automatic Data Processing, Inc. (ADP) is facing challenges in its growth potential due to high valuation and slowing employment trends, despite reporting a revenue increase in its recent financial results [2][3][6]. Financial Performance - For the quarter ending December 2025, ADP reported a revenue of $5.36 billion, reflecting a 6.2% increase from the previous year, but it fell short of the Zacks Consensus Estimate of $5.38 billion, resulting in a negative surprise of 0.47% [4]. - ADP's earnings per share (EPS) for the same quarter was $2.62, surpassing the consensus estimate of $2.58, indicating a positive surprise of 1.62% and growth from the previous year's EPS of $2.35 [4]. Market Position - ADP's current stock price is $254.28, showing a slight decrease of 0.09% or $0.23, with a trading range between $248.30 and $255.73 today [5]. - The company's market capitalization is approximately $102.8 billion, with a trading volume of 1,945,350 shares on the NASDAQ exchange [5]. Analyst Sentiment - Jefferies has maintained an "Underperform" rating for ADP, citing concerns over its high valuation of 22 times earnings and mid single-digit growth potential [2][6]. - The skepticism regarding ADP's Q2 report suggests that analysts do not expect significant share price boosts in the near term [2].

Company Overview - Paychex, Inc. (NASDAQ:PAYX) is a provider of human capital management solutions, including payroll processing, payroll tax and compliance, HR administration, benefits, and workforce management, primarily serving small to mid-sized businesses [2]. Financial Performance - Paychex reported a modest top and bottom-line beat in its latest earnings report, with management raising the midpoint of the full-year earnings forecast for the second consecutive quarter [1]. Market Sentiment - The company is viewed positively by analysts, with Jim Cramer highlighting its relevance as a barometer for employment trends, particularly in the small and medium-sized business sector [1].

Core Insights - Workday, Inc (NASDAQ:WDAY) demonstrates strong deal momentum, particularly in commercial, healthcare, and financial services sectors, leading to a maintained Buy rating with a price target of $265 [1][2]. Group 1: Financial Performance - The analyst projects a 16.5% growth in current remaining performance obligation (cRPO) for the third quarter, with a similar expectation of 15.5% growth for the fourth quarter year-over-year [3]. - Anticipated margins for the third quarter and fiscal 2026 are 28% and 28.9%, respectively, with expectations of a beat-and-raise quarter as the company aims for a 35% operating margin by fiscal 2028 [3][4]. Group 2: Market Trends and Demand - There is a noted increase in demand for human capital management (HCM) solutions, including add-on products like Extend and talent-acquisition tools, alongside improving trends in Europe [2][4]. - The company is expected to achieve solid free cash flow growth, alleviating earlier investor concerns regarding AI disruption and growth targets [4][5]. Group 3: Long-term Outlook - Workday's updated long-term goals of 12% to 15% revenue growth and 35% margins support a credible free cash flow growth model, with potential for multiple expansion as the stock trades at 14 times calendar 2027 free cash flow [5]. - The company is positioned for healthy growth through international expansion, mid-market wins, and platform deals, which are expected to enhance investor confidence [6].

Core Viewpoint - Paychex, Inc. (NASDAQ:PAYX) is currently viewed as a top large-cap stock to buy at a 52-week low, despite a recent price target reduction from $149 to $140 by TD Cowen analyst Bryan Bergin, who maintains a Hold rating on the stock [1]. Financial Performance - The analyst anticipates that Paychex's first-quarter results will slightly exceed market estimates, although there are concerns regarding the lack of clear growth drivers for fiscal 2026 [2]. - The company's organic growth target of approximately 5% is considered challenging to achieve compared to the previous year's exit rate [3]. Market Concerns - Recent stock underperformance is attributed to labor market concerns and skepticism regarding Paychex's organic growth guidance [2]. - The need for stronger organic growth in Q1 is emphasized as crucial for the stock to gain upward momentum, despite the company's efforts to manage pricing pressures [3]. Business Overview - Paychex, Inc. specializes in providing human capital management solutions tailored for small to medium-sized businesses [3].

Company Overview - TriNet Group, Inc. is a human capital management firm with a market capitalization of $3.25 billion, primarily serving small and medium-sized businesses in the U.S. and globally [1]. Investment Insights - The firm offers solutions that are critical for managing human resources, which is essential for the operational efficiency of small and medium enterprises [1]. - Daniel Sereda, a chief investment analyst, emphasizes the importance of filtering vast amounts of data to identify key investment opportunities [1]. Market Position - TriNet Group operates in a competitive landscape, focusing on providing high-quality analysis and insights that are valued by institutional market participants [1].

Core Insights - The staffing industry is evolving rapidly due to digital innovation, demographic changes, and the demand for flexible work arrangements, making effective staffing solutions critical for companies [3][4] - Staffing firms are increasingly viewed as growth enablers, helping organizations navigate economic uncertainties and scale for growth [4][5] Industry Overview - The staffing ecosystem has transformed, with organizations seeking strategic partners who understand talent needs and market trends [3] - Technology, including AI-enabled recruitment tools and talent analytics, is becoming standard in staffing strategies, allowing for faster and smarter hiring decisions [3] Investment Opportunities - The staffing sector presents compelling opportunities for investors, with firms like ADP, Korn Ferry, and Barrett Business Services positioned as key players in workforce transformation [5][6] - As hiring accelerates, staffing companies are at the forefront of providing scalable solutions that contribute to economic growth and long-term value creation [5] Company Highlights - **ADP**: A leader in human capital management solutions, ADP reported revenues of $5.1 billion for Q3 fiscal 2025, a 5.7% year-over-year increase, and is focused on expanding its cloud-based HCM and HR outsourcing solutions [8][9] - **Korn Ferry**: Specializes in executive search and workforce transformation, leveraging data-driven insights and AI tools to enhance hiring processes and leadership development [10][11][12] - **Barrett Business Services (BBSI)**: Provides HR outsourcing and management consulting, focusing on personalized client interactions and local market expertise, which supports its sustained growth [13]