3 Reasons Paycom Stock Is a Buy
In April 2020, the U.S. unemployment rate hit 14.8%, according to the U.S. Bureau of Labor Statistics. In other words, roughly 1-in-7 people looking for a job couldn't find one. That high rate, not seen since the Great Depression years, has fallen somewhat over the past nine months, but it still sits at a relatively elevated 6.3% as of January 2021.
Not surprisingly, Paycom Software (NYSE: PAYC) -- a provider of human capital management (HCM) solutions like payroll software -- had a rough year as a result of this elevated jobless rate. Revenue growth decelerated substantially, and the company's net income dropped 21% year over year in 2020.
The good news in this otherwise gloomy list of facts is that these are very likely just temporary headwinds. Paycom stock is still a buy and here are three reasons why.
Source Fool.com
