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Here's Why Paycom is a Promising Portfolio Pick Now

Paycom (NYSE: PAYC) is one stock investors should consider adding to their portfolio to benefit from its upside potential. Making a remarkable rally in 2023, tech stocks have shown no signs of slowing this year. With a year-to-date (YTD) rise of 20.6%, the tech-laden Nasdaq Composite has outperformed The Dow Jones Industrial Average and the S&P 500 index's increase of 4.3% and 16.1%, respectively. Technology stocks have more than 50% weightage in the Nasdaq Composite index. The Technology Select Sector SPDR Fund ETF, the most important component of the broad technology market index, has returned 21% YTD. The Zacks Computer and Technology sector has registered a YTD gain of 28.2% The rally has been primarily driven by cooling inflationary pressure and stable gasoline prices, which have subsided the fears of a recession. A resurgence in global semiconductor sales and a potential benchmark interest rate cut this year are expected to continue driving the momentum for tech stocks for the remainder of 2024. However, Paycom is among such stocks that have been left behind this year's tech rally. The stock has plunged 30.8% YTD while the Zacks Internet – Software industry has risen 39.1% during the same time frame. Therefore, considering the company's impressive growth profile and attractive valuation, we believe it is the right time to invest in the stock. Image Source: Zacks Investment Research Why Should You Invest in PAYC Stock? Paycom currently trades significantly lower than its 52-week high, which reflects its potential to go upward. The stock's closing price of $143.11 on Jul 3, 2024, ...