5 Best Staffing Company Stocks To Invest In

2. Paychex, Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders: 33

Paychex, Inc. (NASDAQ:PAYX) is a human capital management services provider based in Rochester, New York, United States. As the name suggests, the company is primarily involved in payroll and related services, allowing its customers to pay their employees and conduct compliance.

Jefferies lowered Paychex, Inc. (NASDAQ:PAYX)’s price target to $130 from $140 in May 2022, sharing worries about a recession and changing the price target as part of a wider software industry target reduction. Despite the slightly negative sentiment, Paychex, Inc. (NASDAQ:PAYX)’s CEO was optimistic in March 2022, as he pointed out a great macroeconomic environment and strong employment trends.

Paychex, Inc. (NASDAQ:PAYX) has one of the largest customer bases for a payroll company. By the end of last year, it was serving more than 710,000 companies and reported a high retention rate as well. Additionally, the firm has posted 11 years of successive dividend growth.

Paychex, Inc. (NASDAQ:PAYX) earned $1.2 billion in revenue and $1.15 in non-GAAP EPS by the end of its second fiscal quarter. These allowed it to beat analyst estimates for both metrics. Insider Monkey analyzed 912 hedge fund portfolios for Q1 2022 and discovered that 33 had invested in the company.

Paychex, Inc. (NASDAQ:PAYX)’s largest investor is Robert Joseph Caruso’s Select Equity Group via holding 2.7 million shares worth $377 million.