1 Beaten-Down Software Stock to Buy on the Dip
Since the stock peaked in late 2021, payroll and human resources software provider Paycom (NYSE: PAYC) has been a disaster for investors. Shares are down a whopping 74% from that all-time high, and they've shed nearly 30% this year alone.
Paycom's business is tied to hiring trends and the state of the labor market, so ebbs and flows aren't uncommon. But one thing that has investors spooked is a big slowdown in growth caused in part by a newer product line.
Paycom's Beti, which enables employees to do their own payroll and can greatly reduce the number of errors and issues in the payroll process, is a double-edged sword for the company. While Beti delivers immense value to Paycom's customers, it has also reduced demand for some of Paycom's other services. "Now that more clients are achieving the ROI that Beti has to offer, it has eliminated certain billable items, which is cannibalizing a portion of our services and unscheduled revenues," said Paycom CFO Craig Boelte last year.
Source Fool.com
