Aug. 15 at 12:06 AM
TD Cowen named Paycom Software its top software-sector pick following a strong Q2 performance that exceeded analyst expectations and prompted the company to raise its full-year outlook. The firm highlighted stronger revenue momentum, significant profitability improvements and a notably better free-cash-flow outlook, estimating the stock could gain more than 10%.
Paycom reported Q2 revenue of
$531.2M and adjusted EPS of
$2.78, both above consensus estimates. The company continues to expand its AI-powered automation and decision-making capabilities, including an automated Asset Management solution launched in July. The product targets a multibillion-dollar total addressable market by helping organizations track, deploy, recover and manage physical and digital assets, while improving security, compliance and operational efficiency.
$PAYC