If you’re looking for ideas in this market, digging through tech stocks is never a bad idea. Tech offers up growth and excitement you don’t see in more traditional industries. Today’s Bull of the Day is a stock that’s in the cloud computer, software-as-a-service business. I’m talking about Zacks Rank #1 (Strong Buy) Paycom Software ( PAYC - Free Report) . Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking. The reason for the favorable Zacks Rank is the recent earnings estimate revisions to the upside. Over the last sixty days, eleven analysts have increased their earnings estimates for the current year while four have done so for next year. The bullish revisions have pushed up our Zacks Consensus Estimate from $1.52 to $2.46. Next year’s number has shot up from $1.89 to $3.06. That puts the current year’s EPS growth estimate at 89.23% and next year’s at 24.5%. Paycom’s run has been going on for quite some time. With earnings growth as strong as it has been over the last few years, perhaps this run is justified. The stock last pulled back to support at the 50-day moving average in early February. Support really popped in with the stock under $82. Since then, the stock has shot up to $112. Yesterday the stock closed at $109.82.
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