5 Cloud Computing Stocks to Watch As AI Arms Race Is Underway

2. Paycom Software, Inc. (NYSE:PAYC)

Number of Hedge Fund Holders: 48

Upside Potential: 15.33%

Analyst Price Target: $368.42

Paycom Software, Inc. (NYSE:PAYC) is a company providing cloud-based human capital management solutions delivered as software-as-a-service for businesses in the US.

As of June 28, William Blair’s Matthew Pfau holds an Outperform rating on Paycom Software, Inc. (NYSE:PAYC) shares.

There were 48 hedge funds long Paycom Software, Inc. (NYSE:PAYC) in the first quarter, with a total stake value of $1.2 billion.

In its fourth-quarter 2022 investor letter, Polen Capital said the following about Paycom Software, Inc. (NYSE:PAYC):

“Paycom Software, Inc. (NYSE:PAYC), a high quality, high-growth leader in human capital management and payroll software, was the largest single detractor from returns over the quarter, reversing some of the gains it made in Q3. The company posted strong third-quarter results, with revenue and earnings ahead of expectations. However, concerns over a Global recession and a weaker US employment market weighed heavily on the share price. The company continues to take market share from long-standing incumbents. We believe the business has a long runway with only approximately 5% market share and a growing total addressable market.”