Paylocity (PCTY - Free Report) recently partnered with Compeat, a provider of restaurant accounting, back office, workforce and intelligence management software. The alliance is aimed at boosting modern payroll and human resources (HR) solutions for hospitality brands.
Through Paylocity’s platform, customers of Compeat are likely to have better capacity to make operational decisions, explore a sophisticated workplace and enhance employee participation. Notably, Paylocity’s solution is tailored to address the unique compliance requirements that restaurants face.
Talking about the partnership, Compeat management stated that after a thorough review of the market, the authorities have been impressed with Paylocity’s modern platform. The company thinks Paylocity’s mobile app supporting on-demand access to paychecks, time clocks and human resources information supports to be a perfect fit for easing restaurant employees’ lives.
Moreover, Paylocity management was quoted saying, “Paylocity’s user-friendly, human capital management and payroll software is an ideal fit with hospitality businesses who want to provide modern tools to their employees”.
Paylocity Gains From Wider Clientele
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 expanding the company’s clientele, which is boosting its top line.
The company is benefiting from the growing adoption of its HCM solutions among clients with less than 50 employees. Moreover, a healthy momentum in the company’s core and upper end of the market is also a tailwind.
The company is gaining market share over the most critical client demand area of HCM, which in turn, fuels its growth. The HCM solution includes time and labor management, payroll, talent management and HR management applications. These offerings have been increasingly helping clients tackle both permanent and temporary workforce.
Further, the release of Learning Management System, which garnered a positive feedback from clients, is encouraging. Also, the addition of on-demand pay to its portfolio is likely to boost client wins going forward.
For the last few quarters, clients shifting from traditional payroll service providers to the company’s SaaS-based services contributed significantly to its revenues. Hence, regular investments in technological improvements along with product innovation will continue to boost the company’s top line.
Zacks Rank and Other Stocks to Consider
Currently, Paylocity has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are Synopsys (SNPS - Free Report) , Alteryx (AYX - Free Report) and Five9 (FIVN - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Synopsys, Alteryx and Five9 is currently projected to be 12%, 17.6% and 10%, respectively.
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