Paycom is one of the leading companies in the Human Capital Management space. It offers a range of cloud-based human resource solutions covering talent acquisition, payroll and time management, onboarding, ongoing talent management, and other human resource areas. Most people think of Facebook or Google when they hear tech stocks. However, cloud computing is creating growth opportunities in plenty of business functions. Human resources are one such example. Therefore, an investor’s search for the technology stock to buy right now should happen by considering a more comprehensive range of possibilities. The key is to pick companies with substantial competitive advantages, a track record, and the emergence of technology trends like cloud computing. Paycom was founded in 1998 during the tech boom by someone who had previously worked in the payroll industry. Chad Richison’s founder had insight into the industry and combined his knowledge with technology to start Paycom.
More About Paycom
Paycom’s products are developed in-house. The company sells its solutions through its trained sales staff based throughout the US. One of the best things about Paycom is its diverse client base. The company has some 31,000 clients worldwide. No one client accounts for more than 0.5% of total revenues. So, there is no actual client concentration risk.
Additionally, Paycom is consistently able to retain more than 90% of its clients, resulting in steady recurring revenue for the company. Payroll processing is by far the most critical segment for Paycom. It derives most of its revenue there because most of Paycom’s clients have to use the payroll application to access other applications. Paycom has a robust business model that is scalable, and the company is able to retain its clients. It is among the top choices if you want to buy now tech stocks.
Technology Stock To Buy Right Now
On 27th July 2021, Paycom’s stock closed at $388.56 and was down 0.7% for the day. The stock was up 4.03% on a 1-month basis. In fact, the stock had rallied by close to 27% since mid-May.