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Paylocity (PCTY) Upgrades Portfolio to Mitigate Disruptions

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Paylocity (PCTY - Free Report) is taking various steps to keep its employees and clients updated about the recent changes in legislation during the global coronavirus outbreak. Its Community platform, Mobile, Learning Management System and Surveys have witnessed a spike in usage in the past few weeks, reflecting the company’s success in providing valuable information and support to its customers and workers.

Notably, as soon as the Coronavirus Aid, Relief and Economic Security (CARES) Act was passed into law on Mar 27, Paylocity introduced new resources and product functionalities for companies to easily leverage the key provisions of the law on the next working day, i.e. Mar 30. The new features also grant the companies the ability to access clients’ social security tax-deferral options.

The company also delivered new resources to educate companies on state and federal legislation, including the Families First Coronavirus Response Act (FFCRA) legislation.   

The resources are aimed at helping employers understand and implement relevant points of the new law for their business and employees. Training sessions on the new legislation have also been added to its learning management system. Its recent webinar on the CARES Act was a success with more than 10,000 participants.
 

Growing Clientele a Boon

Paylocity’s robust product portfolio is allowing it to expand its clientele. Growing adoption of its HCM solutions among clients is a key driver. Moreover, a healthy momentum in the company’s core and the upper end of the market is a tailwind.

Further, the Learning Management System is garnering positive feedbacks from clients, which is encouraging. The company’s employee-focused social communication platform, Community, designed for clients to strengthen employee connection, engagement and productivity, is also a positive. Rising uptake of the company’s new product menu is reflected in client additions.

Notably, as of fiscal 2019, the company provided nearly 20,200 clients across the United States with its payroll and HCM software solutions, which had more than 100 employees, on average.

Zacks Rank & Other Stocks to Consider

Paylocity currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader technology sector are Advanced Semiconductor Engineering, Inc. (ASX - Free Report) , LogMein, Inc. and Avid Technology, Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Advanced Semiconductor, LogMeinand Avid Technology is currently pegged at 3.03%, 5% and 15%, respectively.

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