Paycom Software Stock Near Crucial Support – Buy Signal?

November 7th, 2025 by Trefis Team
PAYC: Paycom Software logo
PAYC
Paycom Software

Paycom Software (PAYC) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($155.81 – $172.21), levels from which it has bounced meaningfully before. In the last 10 years, Paycom Software stock received buying interest at this level 4 times and subsequently went on to generate 79.5% in average peak returns.

  Peak Return Days to Peak Return
2/14/2019 9.1% 68
4/23/2019 31.1% 126
10/23/2019 73.5% 104
4/6/2020 204.2% 575

But is the price action enough alone? It certainly helps if the fundamentals check out. For PAYC Read Buy or Sell PAYC Stock to see how convincing this buy opportunity might be.

No matter where PAYC stock goes, your portfolio should stay on track. See how High Quality Portfolio can help you do that.

Here are some quick data points for Paycom Software that should help decision:

Relevant Articles
  1. Stocks, Bonds, Gold, Crypto: Market Update 12/4/2025
  2. What’s Behind The 86% Surge in Wheaton Stock?
  3. Why Has Barrick Mining Stock Surged 154%?
  4. What Could Send Pfizer Stock Soaring
  5. What Can Trigger Intel Stock’s Slide?
  6. Cash Machine Trading Cheap – Iridium Communications Stock Set to Run?
  • Revenue Growth: 10.2% LTM and 17.6% last 3 year average.
  • Cash Generation: Nearly 18.1% free cash flow margin and 28.1% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for PAYC was 10.2%.
  • Valuation: PAYC stock trades at a PE multiple of 22.1

For quick background, Paycom Software provides cloud-based human capital management software-as-a-service for small to mid-sized U.S. companies, offering talent acquisition, applicant tracking, background checks, onboarding, and tax credit services.

  PAYC S&P Median
Sector Industrials –
Industry Human Resource & Employment Services –
PE Ratio 22.1 23.5
   
LTM* Revenue Growth 10.2% 6.0%
3Y Average Annual Revenue Growth 17.6% 5.5%
Min Annual Revenue Growth Last 3Y 10.2% -0.0%
   
LTM* Operating Margin 28.1% 18.8%
3Y Average Operating Margin 29.5% 18.2%
LTM* Free Cash Flow Margin 18.1% 13.6%

*LTM: Last Twelve Months

What Is Stock-Specific Risk If The Market Crashes?

Paycom isn’t immune to big drops. It fell about 32% in the 2018 correction, 51% during the Covid pandemic, and took a 73% hit in the inflation shock. Even with strong fundamentals, the stock has shown sharp declines when markets turn sour. Favorable conditions matter, but volatility can still hit hard.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read PAYC Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.