Jim Cramer Discussed These 21 Stocks As Bond Yields Soared

18. Paychex Inc. (NASDAQ:PAYX)

Number of Hedge Fund Holders In Q3 2024: 20

Paychex Inc. (NASDAQ:PAYX) is an important player in the SaaS-based payroll processing services provider market. Since its performance is dependent to a large extent on small and medium business performance, the shares perform well when investors perceive an easing of monetary policy. As a result, the fact that Paychex Inc. (NASDAQ:PAYX)’s shares are flat year-to-date is unsurprising. In fact, had the firm not announced a deal to expand its operations by acquiring Paycor, the stock might have suffered more. Cramer commented on Paychex Inc. (NASDAQ:PAYX) CEO’s astute observation of the US economy:

“I had John Gibson on recently. He’s the CEO of Paychex. And this is the largest payroll processor for small to medium sized businesses. Here’s what the Fed did wrong. They didn’t, he just got, a Fed advisor, John. The small business outlook post the election was astonishing. And the amount of hiring post the election was incredible. But that was not in any of the models. What J Powell [inaudible] sit around and say, listen if Trump wins we gotta stop, stop cutting? But that was the key fulcrum. What small business, the backbone of the US economy I may add, and we got that wrong. Everyone got it wrong except for Gibson because he was looking at the Paychex stubs. And he saw the hiring explosion.”