We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paylocity Reaps the Benefits of Robust SaaS Based Portfolio
Read MoreHide Full Article
On Jan 2, we issued an updated research report on Paylocity Holding Corporation (PCTY - Free Report) .
Notably, Paylocity holds a significant position in the payroll processing and human capital management market backed by its strong product suite.
The robust product portfolio has helped in expansion of the company’s clientele, which eventually resulted in 25% year-over-year growth in fiscal first-quarter 2018 revenues.
Key Catalysts in Detail
The company’s Software as a Service (SaaS) based human capital management (HCM) services have aided top-line growth. We also remain positive about Paylocity’s regular investments in SaaS technology.
SaaS HCM solutions that minimize data integrity issues across applications and ease implementations compared to those offered by traditional software providers are being adopted by organizations on a large scale.
According to Gartner, the global SaaS market is expected to increase at a five-year compound annual growth rate (CAGR) (2016–2020) of 15.65%. With its SaaS-based applications, we think that Paylocity is well positioned to lead the market.
For the last few quarters, clients moving from traditional payroll service providers to the company’s SaaS-based services contributed significantly to its revenues. Hence, regular investments in technological upgrades, along with product innovation, will continue to boost the company’s top line.
Additionally, we believe, that growth of Paylocity’s Affordable Care Act (ACA) dashboard application that tracks employee count, employee status and health care plan affordability is another tailwind and will carry the trend going ahead.
Furthermore, Paylocity is a cash-rich company with a strong balance sheet. Since it has no debt on its balance sheet, the existing cash can be used for pursuing strategic acquisitions, investment in growth initiatives and rewarding shareholders.
Shares of Paylocity have surged 55.1% the last year, outperforming the 28.6% rally of the industry it belongs to.
To Conclude
We believe that with a strong balance sheet, an enriched SaaS based product portfolio and an increasing client base, the company is well poised to enjoy steady growth going ahead.
The long-term EPS growth rate for NVIDIA, Broadcom and Micron is projected to be 10.3%, 13.8% and 10%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Paylocity Reaps the Benefits of Robust SaaS Based Portfolio
On Jan 2, we issued an updated research report on Paylocity Holding Corporation (PCTY - Free Report) .
Notably, Paylocity holds a significant position in the payroll processing and human capital management market backed by its strong product suite.
The robust product portfolio has helped in expansion of the company’s clientele, which eventually resulted in 25% year-over-year growth in fiscal first-quarter 2018 revenues.
Key Catalysts in Detail
The company’s Software as a Service (SaaS) based human capital management (HCM) services have aided top-line growth. We also remain positive about Paylocity’s regular investments in SaaS technology.
SaaS HCM solutions that minimize data integrity issues across applications and ease implementations compared to those offered by traditional software providers are being adopted by organizations on a large scale.
According to Gartner, the global SaaS market is expected to increase at a five-year compound annual growth rate (CAGR) (2016–2020) of 15.65%. With its SaaS-based applications, we think that Paylocity is well positioned to lead the market.
For the last few quarters, clients moving from traditional payroll service providers to the company’s SaaS-based services contributed significantly to its revenues. Hence, regular investments in technological upgrades, along with product innovation, will continue to boost the company’s top line.
Paylocity Holding Corporation Revenue (TTM)
Paylocity Holding Corporation Revenue (TTM) | Paylocity Holding Corporation Quote
Additionally, we believe, that growth of Paylocity’s Affordable Care Act (ACA) dashboard application that tracks employee count, employee status and health care plan affordability is another tailwind and will carry the trend going ahead.
Furthermore, Paylocity is a cash-rich company with a strong balance sheet. Since it has no debt on its balance sheet, the existing cash can be used for pursuing strategic acquisitions, investment in growth initiatives and rewarding shareholders.
Shares of Paylocity have surged 55.1% the last year, outperforming the 28.6% rally of the industry it belongs to.
To Conclude
We believe that with a strong balance sheet, an enriched SaaS based product portfolio and an increasing client base, the company is well poised to enjoy steady growth going ahead.
Zacks Rank and Key Picks
Paylocity has a Zacks Rank #2 (Buy).
A few top-ranked stocks in the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , Broadcom Limited (AVGO - Free Report) and Micron Technology, Inc. (MU - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term EPS growth rate for NVIDIA, Broadcom and Micron is projected to be 10.3%, 13.8% and 10%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>