#Paycom #Stock #Jumped #Thursday #Lead #Gainers
Key takeaways
- Shares of payroll and human resources software provider Paycom Software rose 21% on Thursday, marking the biggest gain in the S&P 500.
- Paycom beat third-quarter sales and earnings estimates as a strong labor market boosted demand for the company’s workforce management services.
- With Thursday’s gains, Paycom shares are back in positive territory for 2024.
Shares of Paycom Software (PAYC) rose 21% on Thursday, marking the highest daily performance in the S&P 500, after the payroll and human resources software company reported better-than-expected third-quarter sales and profits.
Strength in the labor market, with slowing inflation, supports a steady pace of hiring and has helped boost demand for Paycom’s employee management solutions.
Paycom posted strong sales growth in the third quarter, with total revenue jumping 11.2% year over year. Recurring revenue rose 11.6% for Paycom, representing 98.5% of Paycom’s total revenue. This is highly desirable for software and service providers like Paycom because it represents a steady stream of expected sales.
Paycom stock struggled in the first half of 2024, hitting summer lows below $140 per share. However, the trend has been more positive since mid-July, and with Thursday’s rally, shares are back above $200 and entering positive territory for the year.
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#Paycom #Stock #Jumped #Thursday #Lead #Gainers
