Stock to Watch: Paycom Software (PAYC) Declared Bear of the Day
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2025
0mins
Source: NASDAQ.COM
Paycom's Decline: Paycom Software, once a high-performing HR tech stock, is facing significant challenges due to slowing growth, margin pressure, and increased competition, leading to a Zacks Rank #5 (Strong Sell) rating.
Revenue and Margin Pressures: The company's revenue growth has sharply decelerated, with recent reports showing low-teens growth, while margins have come under pressure as Paycom invests heavily to retain clients amidst a sluggish hiring environment.
Impact of New Product: The rollout of Paycom's automated payroll platform, "Betty," is reducing usage fees for existing customers, which is negatively impacting near-term growth despite its long-term strategic benefits.
Market Sentiment: Analysts have revised earnings estimates downward, leading to a significant drop in the stock's forward P/E ratio, indicating that investors are currently more inclined to "sell the bounce" rather than "buy the dip."
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Analyst Views on PCTY
Wall Street analysts forecast PCTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PCTY is 197.07 USD with a low forecast of 164.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
14 Buy
3 Hold
0 Sell
Strong Buy
Current: 132.150
Low
164.00
Averages
197.07
High
250.00
Current: 132.150
Low
164.00
Averages
197.07
High
250.00
About PCTY
Paylocity Holding Corporation is a provider of cloud-based human capital management (HCM) and payroll software solutions. Its HCM and payroll platform offers a product suite that helps businesses attract and retain talent, build culture and connection with their employees, and streamline and automate human resource (HR) and payroll processes. It provides its software-as-a-service solutions to clients across the United States. Its product suite includes various categories, such as payroll, human resources, time and labor, talent, benefits and employee experience. Its payroll product suite includes payroll and tax services, on demand payment and garnishments, and others. Its human resources product suite includes human resources, workflows and documents and HR edge, and others. Talent product suite includes recruiting, onboarding and market pay. Its employee experiences product suite includes community, video and employee voice. It also offers an all-in-one spending management platform.
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.
Paylocity Schedules Q2 FY2026 Earnings Call for February 5
- Conference Call Scheduled: Paylocity has scheduled a conference call on February 5, 2026, at 4:00 PM Central Time to review its second quarter fiscal results, aiming to provide investors with the latest financial insights and company updates.
- Live Webcast Available: The call will be accessible via a live webcast on the company’s Investor Relations page, ensuring that all investors can receive real-time access to important financial data and management perspectives.
- Earnings Release Preview: A press release highlighting the company’s financial results will be issued prior to the call, enhancing transparency and providing investors with necessary context to better understand performance metrics.
- Focus on Employee Culture: Since its founding in 1997, Paylocity has been dedicated to delivering HR, finance, and IT solutions through a unified platform, helping businesses streamline HR and payroll processes while enhancing employee experience and corporate culture, underscoring its leadership in the industry.
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AllianceHCM Appoints Michael Haske to Board, Enhancing SaaS Expertise
- Leadership Enhancement: AllianceHCM's appointment of Michael Haske to its Board brings nearly three decades of SaaS and HCM experience, including scaling Paylocity to over $1 billion in annual revenue, which is expected to drive further growth in the HCM market.
- Innovation-Driven Technology: Haske's deep expertise in AI-driven innovation and enterprise operations will help accelerate platform innovation at AllianceHCM, enhancing its competitiveness in complex industries such as hospitality, healthcare, and professional services.
- Market Expansion Strategy: This appointment further strengthens AllianceHCM's Board, supporting the company's efforts to expand its national footprint and continue investing in leaders and teams that drive success, thereby improving client retention and market share.
- Culture and Accountability Focus: Haske emphasizes the importance of maintaining company culture and customer focus during rapid expansion, aligning with AllianceHCM's commitment to
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