A Once-in-a-Decade Investment Opportunity: 1 Magnificent Growth Stock to Buy Now and Hold Forever

Paycom Software (NYSE: PAYC) saw its share price tumble about 40% in the wake of its third-quarter earnings report. The driving force behind that drawdown was nothing out of the ordinary. The company provided weaker-than-expected guidance entailing a significant slowdown in sales growth in the coming quarters.

However, the reason for the soft guidance was rather unusual. The innovative payroll software Paycom launched two years ago is now creating so much value for clients that it is cannibalizing sales related to adjacent payroll correction services. Morningstar analyst Emma Williams explained the odd situation like this: "Paycom's laser focus on driving automation and self-service payroll appears to have become a double-edged sword for the firm."

Even so, Paycom remains a strong business with robust growth prospects, and -- with the stock now trading at its cheapest valuation in almost 10 years -- patient investors should view the drawdown as a once-in-a-decade buying opportunity.

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Source Fool.com