Is Paycom Stock a Buy After Beating Wall Street's Expectations?
The U.S. labor market looks strong in spite of macroeconomic uncertainty. Nearly 2.3 million jobs were added between January and June, and unemployment has held steady at 3.6% since March. That has been a tailwind for human capital management (HCM) specialist Paycom Software (NYSE: PAYC).
Paycom reported strong earnings after the market closed on Tuesday, beating Wall Street's expectations on the top and bottom lines. Revenue climbed 31% to $317 million, and non-GAAP (adjusted) earnings rose 30% to $1.26 per diluted share. Better yet, management raised full-year guidance, calling for revenue growth of 28% at the midpoint in 2022.
After that strong showing, is this growth stock a buy?
Source Fool.com
