Paycom Software (NYSE: PAYC) has been a cloud software investor favorite for good reason. Since its IPO in 2014, shares of the human resource management firm are up over 2,500%, trouncing the share price returns of its peers by a wide margin. COVID-19 has accelerated changes in the ways organizations manage their workforces, and Paycom looks poised to continue benefiting from the migration to digital tools that help simplify and automate redundant tasks. It isn’t likely to remain the same high-growth story it was the last few years, but there’s still lots to like about this cloud stock today.
Human resource management software falls under the large but still fast and steadily growing cloud software universe. Even within this subset of the industry, HR management, payroll, and related human capital services technology is a crowded field. According to research tool Noonum, Paycom competes against other small firms like Paylocity, larger HR software companies like Workday and Paychex, and elements of diversified software giants ADP, SAP, and Oracle.