A buying opportunity may have opened up in badly battered small-cap stock Paycom Software (NYSE: $PAYC).
Founded in 1998, Oklahoma-based Paycom is an online payroll and human resource software provider. It is credited with being the first fully online payroll provider in the U.S.
Today, companies large and small outsource their payroll and human resources services to Paycom, which has offices across the U.S.
The business continues to grow at a steady clip, with Paycom reporting that its annual revenue in 2025 grew nearly 10% to $2.05 billion U.S.
The company is also praised for having best-in-class profitability, a solid balance sheet, strong free cash flow, and for being a market leader in payroll automation.
Unfortunately, PAYC has gotten caught up in the downturn in stocks of software companies over fears that artificial intelligence (A.I.) will disrupt their business models.
As a result, PAYC stock has fallen nearly 50% in the last 12 months. But analysts suggest the selloff has been overdone and that Paycom may present a buying opportunity.
Trading at 15 times this year's earnings estimates, Paycom's stock looks cheap compared to the rest of the market.
PAYC stock also offers shareholders a quarterly dividend of $0.38 U.S. per share, giving it a yield of just over 1%.
A market capitalization of $6.42 billion U.S. keeps Paycom in the small-stock camp. But as shares of software companies begin to rebound, PAYC stock might be worth a look.
COMTEX_482933969/2797/2026-06-04T12:21:21