- Paycom is a provider of HCM services including payroll services.
- The company is seeing better revenue growth than peers and gross margins are also higher despite the lower revenue base.
- There are downside risks, mostly related to the company's high valuations and contagion effect related to adverse news concerning the tech sector.
- After such a drop and with the ability to fare better on the profitability front, the stock is a buy.
- The company has been shortlisted by analysts at Credit Suisse with the inverse relationship between stock price and EBITDA performance deserving investors' attention.
For further details see:
Paycom: A Buy After The Recent Drawdown