Implied QGRO Analyst Target Price: $112
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2025
0mins
Source: NASDAQ.COM
ETF Analyst Target Price: The American Century U.S. Quality Growth ETF (QGRO) has an implied analyst target price of $111.50, indicating a potential upside of 10.11% from its current trading price of $101.26.
Underlying Holdings Performance: Notable underlying holdings such as Qualys, Gilead Sciences, and Paycom Software show significant upside potential based on analyst target prices, raising questions about the validity and optimism of these targets in light of recent market developments.
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Analyst Views on PAYC
Wall Street analysts forecast PAYC stock price to rise
14 Analyst Rating
3 Buy
11 Hold
0 Sell
Hold
Current: 136.720
Low
165.00
Averages
201.82
High
245.00
Current: 136.720
Low
165.00
Averages
201.82
High
245.00
About PAYC
Paycom Software, Inc. is a provider of a comprehensive, cloud-based human capital management (HCM) solution delivered as software-as-a-service (SaaS). The Company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Its solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications. The Company's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Paycom Recognized as One of America's Greatest Workplaces in Tech 2026
- Employee Satisfaction Recognition: Paycom has been named one of America's Greatest Workplaces in Tech 2026, reflecting its outstanding performance in employee satisfaction, career progression, and working environment, thereby solidifying its leadership position in the industry.
- Cultural Achievement: Senior executive Tiffany McGowen emphasized that the company's success stems from its team members' contributions, indicating that the cultivation of company culture is closely linked to employee growth, which enhances loyalty and a sense of belonging.
- Investment in Training and Development: The company is committed to supporting employee growth through training, leadership development, and ongoing upskilling, which not only enhances professional capabilities but also builds a strong internal talent pipeline, ensuring future business growth.
- Tech-Driven HR Solutions: Paycom's automated HR and payroll software simplifies employee development processes by integrating learning, certifications, and performance management, improving data accuracy and work efficiency, thus further enhancing the company's competitiveness in the digital economy.
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- Payroll Management Advantage: Paycom scored highly in the payroll category, particularly for its ability to manage and streamline payroll processes, ensuring employees are paid accurately and on time, which enhances client trust and reliance on its products.
- Customer Feedback Driven: With over 200 G2 badges, including 141 Leader badges, Paycom reflects strong performance in customer satisfaction and market presence, further enhancing its brand image and reputation.
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Analysis of PAYC Dividend Predictions and Stock Performance
- Dividend Yield Expectation: PAYC currently has an annualized dividend yield of 1.10%, and while dividends are not always predictable, historical data can assist in assessing whether future dividends will continue, impacting investor return expectations.
- Price Volatility Range: PAYC's 52-week low is $106.62 and high is $267.76, with the last trade at $138.06, indicating relative stability within its price range, which may attract risk-averse investors.
- ETF Holding Proportion: According to ETF Channel, PAYC constitutes 3.90% of the Global X Cloud Computing ETF (CLOU), which is up about 2.9% on the day, highlighting PAYC's market influence in the cloud computing sector.
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- Employee Satisfaction Recognition: Paycom has been named one of America's Greatest Workplaces in Tech 2026, reflecting its outstanding performance in employee satisfaction, career progression, and working environment, thereby solidifying its leadership position in the industry.
- Cultural Achievement: Senior executive Tiffany McGowen emphasized that the company's success stems from its team members' contributions, indicating that the cultivation of company culture is closely linked to employee growth, which enhances loyalty and a sense of belonging.
- Investment in Training and Development: The company is committed to supporting employee growth through training, leadership development, and ongoing upskilling, which not only enhances professional capabilities but also builds a strong internal talent pipeline, ensuring future business growth.
- Tech-Driven HR Solutions: Paycom's automated HR and payroll software simplifies employee development processes by integrating learning, certifications, and performance management, improving data accuracy and work efficiency, thus further enhancing the company's competitiveness in the digital economy.
See More
Investment Opportunities and Risks in Small-Cap Stocks
- Paycom's Weak Performance: With a market cap of $6.42 billion, Paycom's innovative 'Beti' technology for employee self-service payroll has not translated into strong demand, as evidenced by a mere 9% average billings growth over the past year, and a projected sales growth of only 6.7% for the next 12 months, indicating potential downward pressure on its stock price.
- First Busey's Declining Profitability: First Busey, valued at $2.27 billion, has a net interest margin of 3.4%, reflecting high servicing and capital costs, while its annual earnings per share growth of 1.9% over the past five years has lagged behind revenue gains, with a forecasted 3.1% decline in tangible book value per share for the next year, significantly impacting its profitability.
- Bel Fuse's Growth Potential: Bel Fuse, with a market cap of $3.92 billion, has seen substantial operating profit growth over the past five years due to fixed cost leverage and efficiency improvements, achieving a 20.5% annual growth in earnings per share that outpaces revenue growth, alongside a 13.3 percentage point increase in free cash flow margin, providing more capital for future investments and shareholder returns.
- Shifting Market Dynamics: The current market is rapidly distinguishing quality stocks from overpriced ones, with AI technology swiftly transforming multiple sectors, prompting investors to pay attention to StockStory's weekly new stock recommendations to seize potential investment opportunities.
See More
Paycom Recognized as Top Software Provider in G2 Reports
- Leading Software Categories: Paycom was recognized as the top software provider in HR Compliance and Implementation Index in G2's Summer 2026 Reports, showcasing its exceptional performance in HR and payroll management, thereby solidifying its market leadership.
- Payroll Management Advantage: Paycom scored highly in the payroll category, particularly for its ability to manage and streamline payroll processes, ensuring employees are paid accurately and on time, which enhances client trust and reliance on its products.
- Customer Feedback Driven: With over 200 G2 badges, including 141 Leader badges, Paycom reflects strong performance in customer satisfaction and market presence, further enhancing its brand image and reputation.
- Innovative Technology Application: Paycom's Beti® feature is praised by users as the
See More
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- Significant Profit Growth: Block's gross profit surged 27% year-over-year to $2.91 billion in Q1 2026, prompting management to raise full-year gross profit guidance to $12.33 billion, indicating a robust trajectory for profitability that is likely to support further stock price increases.
- Strong Cash App Performance: In Q1 2026, Cash App's gross profit rose 38% year-over-year to $1.91 billion, with monthly active users reaching 59 million, showcasing success in customer relationship management and innovation in financial tools, thereby solidifying Block's market position.
- Square Payment Volume Growth: Square's gross profit increased 9% year-over-year to $982 million, with gross payment volume (GPV) growing 13% to $61.2 billion; management expects GPV to continue rising in 2026 despite foreign exchange pressures, providing a stable revenue stream for the company.
- Expansion of Credit Business: Block's consumer lending origination volume soared 82% year-over-year to $17.6 billion, driven by strong performance in Cash App Borrow; management anticipates normalization of lending growth in Q2 2026, yet views embedded lending as a key long-term driver of profitability.
See More
Analysis of PAYC Dividend Predictions and Stock Performance
- Dividend Yield Expectation: PAYC currently has an annualized dividend yield of 1.10%, and while dividends are not always predictable, historical data can assist in assessing whether future dividends will continue, impacting investor return expectations.
- Price Volatility Range: PAYC's 52-week low is $106.62 and high is $267.76, with the last trade at $138.06, indicating relative stability within its price range, which may attract risk-averse investors.
- ETF Holding Proportion: According to ETF Channel, PAYC constitutes 3.90% of the Global X Cloud Computing ETF (CLOU), which is up about 2.9% on the day, highlighting PAYC's market influence in the cloud computing sector.
- Intraday Trading Performance: In Friday trading, Paycom Software Inc shares rose approximately 1.8%, reflecting optimistic market sentiment regarding its future performance, potentially attracting more investor attention to its dividends and growth potential.
See More
Burry Analyzes Software Stocks' Risks and Opportunities
- Software Stock Series: Noted investor Michael Burry is conducting a series of analyses on the software industry, with the first focusing on office software companies, emphasizing unique perspectives on AI threats that are expected to impact market evaluations of related stocks.
- Defensive Stock Recommendations: Burry identifies Freshworks and Paycom Software as relatively defensive against AI disruption, with the former rated “Chapel” due to internal AI initiatives and budget-friendly strategies, while the latter is seen as a strong defense rated “Stone” due to its database interfacing with regulatory agencies.
- Risk Warnings: Burry cautions investors to avoid HubSpot and Workday, with the former facing significant risks due to its core SMB customer base being heavily disrupted by AI, and the latter being extremely vulnerable due to its legacy business model amid AI-driven seat losses.
- Innovative Rating Framework: Burry employs a unique “owners’ earnings” framework and AI Competitive Threat classification to rate 46 software and payments companies, highlighting the high-risk exposure to small businesses and the protective role of strong databases.
See More
