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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.

PAYC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. PAYC has a Momentum Style Score of B, and shares are up 3.3% over the past four weeks.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.17 to $11.90 per share. PAYC boasts an average earnings surprise of +7.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYC should be on investors' short list.

$240.52

+1.81%

Enterprise software firm Paycom Software, Inc. (PAYC) up 560% since 2015’s first outlier inflow signal.

In this article:PAYC

+1.81%

PAYC provides enterprises with cloud-based software for human resources management, offering data and analytics to manage the full employment cycle. The company’s second-quarter 2026 report showed revenue of $531 million (a 10% year-over-year gain), GAAP net income of $107 million or $2.34 per diluted share (a 20% jump), returned $346 million to shareholders through repurchases, and increased full-year revenue and adjusted EBITDA guidance to a high end of $2.212 billion and $1.022 billion, respectively.

It’s no wonder PAYC shares are up 51% this year – and they could rise more. MoneyFlows data shows how Big Money investors are once again betting heavily on the forward picture of the stock.

Institutional volumes reveal plenty. So far in 2026, PAYC has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PAYC shares. They reflect our proprietary inflow signal, pushing the stock higher:

The return of institutional inflows sent PAYC shares up 51% so far in 2026. Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Paycom.

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PAYC has had strong sales and earnings growth:

3-year sales growth rate (+14.4%) 3-year EPS growth rate (+21.3%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +15.5%.

Now it makes sense why the stock has been generating Big Money interest again. PAYC has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Paycom has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Outlier 20 report 63 times since 2015, gaining 560% in that time. The blue bars below show when PAYC was a top pick this year…institutions are still buying:

PAYC shares have attracted 63 outlier inflow signals since 2015 (560% gain), including the one in August. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

The PAYC revival isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds long positions in PAYC in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here.

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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

Latest news and analysis

While most software companies were retreating, Paycom made an aggressive and unconventional bet on itself, and the market delivered a verdict that caught even seasoned analysts off guard.

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Paycom Software (NYSE:PAYC | PAYC Price Prediction) spent the first half of 2026 doing what most software companies stopped doing: buying its own stock while everyone else was selling.

Buyback By The Numbers Paycom retired roughly 20% of its shares in eight months. The share count fell from 56.1 million at the end of 2025 to about 45.1 million today, and the company did most of that buying while the stock was near a 52-week low of $104.15. In the first six months of 2026, Paycom repurchased nearly 11 million shares for approximately $1.4 billion. That is a company betting on itself at the low.

What It Means Context matters here. Paycom spent $325.5 million on share repurchases in all of fiscal 2025. The 2026 pace is a different animal. In Q1 alone, the company bought back 8,375,443 shares for $1.060 billion and authorized a new $2.00 billion buyback. Q2 added another 2.6 million shares for $346 million, or about 6% of shares outstanding in a single quarter. Management called the repurchases opportunistic, citing a “valuation disconnect” in the market.

The funding is the part long-term holders need to see clearly. Paycom drew $900 million on its $2.1 billion revolving credit facility to support the year-to-date repurchases. Cash and equivalents ended Q2 at $198 million. This was a leveraged buyback funded partly with credit, and the balance sheet reflects that: stockholders’ equity fell to $571.5 million in Q2, down 68.28% year over year because of treasury stock accumulation.

Underneath the buyback, the operating business gave management cover. Q2 revenue was $531 million, up 10%, with recurring revenue of $505 million, up 11% year-over-year. Non-GAAP EPS came in at $2.78, ahead of the $2.381 consensus. Adjusted EBITDA margin expanded 320 basis points to 44.2%. Management raised full-year revenue guidance to $2.197 billion to $2.212 billion and adjusted EBITDA to $1.007 billion to $1.022 billion, implying a record 46% margin at the midpoint.

Market Reaction Paycom stock rose 98.81% between April 1, 2026 and August 31, 2026, from $120.26 to $239.10, with a 46.07% move in August alone. At the Q1 earnings 8-K filing on May 6, 2026, shares were $126.1438. By the Q2 filing on August 5, 2026, they closed at $175.00. The stock now trades above the $211.56 average analyst target, with 6 buy and 14 hold ratings and no sells. Zoom out and the picture is more sober: the stock is still down 50.07% over the last five years, from $478.83 on September 1, 2021.

Bull Case The buyback is a bet the market already validated. Oakmark Select portfolio manager Robert Bierig named Paycom on CNBC on September 1, 2026, saying: “Another example would be Paycom, which is a payroll software company that is buying back 20% of its shares this year. So we think they’re also very much a durable business that is going to benefit from some of the technology changes that are taking off right now.” Bierig also pushed back on the AI-loser framing: “I think people have wanted to put all of software into like an AI loser bucket. And we are big believers in the power of AI, but we think software companies can succeed at the same time.”

The operating case supports the capital allocation. Paycom cut R&D expense from $74.8M to $51.9M, largely because it moved AI workloads in-house. The company spent over $100 million last year preparing its own data centers, and management expects roughly $100 million in R&D savings this year plus $30 million or more from IWant response fees that would have gone to a third party. CEO Chad Richison said Paycom is “well positioned to exceed our initial 2026 plan on both a revenue and profitability basis.” Free cash flow is expected to exceed $650 million for the year. Retiring 20% of the float against that cash profile compounds every future dollar of earnings across a smaller share base.

Bottom Line Paycom bought its own stock at the bottom of a software panic, funded partly with debt, and the stock nearly doubled. For long-term holders, the forward catalyst is the raised guidance: $1.007 billion to $1.022 billion in adjusted EBITDA against a share count that is roughly 20% smaller than it was on New Year’s Day. The stock now sits above the average analyst target, and the analyst desk skews to hold. The buyback is the reason the story worked. Whether it keeps working depends on how the credit line gets paid back, and how quickly the automation savings show up in the 2027 numbers.

Contact [email protected] for any questions or corrections.

Bank of New York Mellon Corp purchased a new position in shares of Paycom Software, Inc. (NYSE:PAYC – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 341,007 shares of the software maker’s stock, valued at approximately $42,858,000. Bank of New York Mellon Corp owned approximately 0.72% of Paycom Software as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in PAYC. Reinhart Partners LLC. grew its holdings in Paycom Software by 887.4% in the fourth quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock valued at $95,351,000 after purchasing an additional 537,726 shares during the period. Contour Asset Management LLC acquired a new position in shares of Paycom Software during the 4th quarter worth approximately $60,333,000. Two Sigma Investments LP lifted its position in shares of Paycom Software by 228.7% during the 3rd quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock valued at $110,756,000 after buying an additional 370,219 shares in the last quarter. Invesco Ltd. lifted its position in shares of Paycom Software by 28.2% during the 4th quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock valued at $248,551,000 after buying an additional 343,494 shares in the last quarter. Finally, River Road Asset Management LLC grew its stake in Paycom Software by 481.9% in the 4th quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock valued at $62,533,000 after acquiring an additional 324,970 shares during the period. Institutional investors and hedge funds own 87.77% of the company’s stock.

Paycom Software Trading Up 2.5% Shares of PAYC opened at $238.07 on Friday. Paycom Software, Inc. has a 52-week low of $104.90 and a 52-week high of $239.92. The stock has a market cap of $10.73 billion, a PE ratio of 25.30, a price-to-earnings-growth ratio of 1.31 and a beta of 0.76. The firm’s fifty day moving average is $168.95 and its two-hundred day moving average is $142.82. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57.

Paycom Software (NYSE:PAYC – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a net margin of 22.78% and a return on equity of 37.06%. The firm had revenue of $531.20 million for the quarter, compared to the consensus estimate of $513.12 million. During the same period last year, the firm posted $2.06 earnings per share. The company’s revenue for the quarter was up 9.8% on a year-over-year basis. Research analysts forecast that Paycom Software, Inc. will post 10.48 earnings per share for the current fiscal year. Paycom Software Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be issued a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, August 24th. Paycom Software’s payout ratio is currently 15.94%.

Wall Street Analysts Forecast Growth A number of research firms have weighed in on PAYC. Mizuho upped their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Cantor Fitzgerald lifted their target price on shares of Paycom Software from $135.00 to $195.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. JPMorgan Chase & Co. boosted their target price on shares of Paycom Software from $140.00 to $264.00 and gave the stock a “neutral” rating in a research note on Tuesday. BTIG Research upped their price target on shares of Paycom Software from $160.00 to $230.00 and gave the stock a “buy” rating in a research report on Thursday, August 6th. Finally, Zacks Research raised shares of Paycom Software from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $208.08.

View Our Latest Report on Paycom Software

(Free Report)

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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Aurora Investment Counsel bought a new position in shares of Paycom Software, Inc. (NYSE:PAYC – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 10,232 shares of the software maker’s stock, valued at approximately $1,286,000.

Other institutional investors have also added to or reduced their stakes in the company. Brown Brothers Harriman & Co. increased its position in Paycom Software by 190.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 154 shares of the software maker’s stock valued at $25,000 after buying an additional 101 shares in the last quarter. Clearstead Advisors LLC raised its stake in Paycom Software by 140.3% in the fourth quarter. Clearstead Advisors LLC now owns 161 shares of the software maker’s stock valued at $26,000 after buying an additional 94 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new stake in Paycom Software in the second quarter worth about $29,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Paycom Software during the second quarter worth about $33,000. Finally, MUFG Securities EMEA plc purchased a new stake in shares of Paycom Software during the second quarter worth about $33,000. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Paycom Software Stock Up 2.8% Paycom Software stock opened at $221.84 on Thursday. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a market capitalization of $10.00 billion, a PE ratio of 23.57, a price-to-earnings-growth ratio of 1.20 and a beta of 0.76. The business has a 50 day simple moving average of $156.82 and a 200-day simple moving average of $138.58. Paycom Software, Inc. has a 12 month low of $104.90 and a 12 month high of $234.60.

Paycom Software (NYSE:PAYC – Get Free Report) last announced its earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.38 by $0.40. The firm had revenue of $531.20 million for the quarter, compared to analyst estimates of $513.12 million. Paycom Software had a return on equity of 37.06% and a net margin of 22.78%.The business’s revenue was up 9.8% on a year-over-year basis. During the same quarter last year, the firm posted $2.06 EPS. On average, analysts anticipate that Paycom Software, Inc. will post 10.68 EPS for the current fiscal year. Paycom Software Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Investors of record on Monday, August 24th will be given a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, August 24th. Paycom Software’s dividend payout ratio is 15.94%.

Analyst Upgrades and Downgrades Several analysts have recently commented on the stock. BTIG Research upped their price objective on shares of Paycom Software from $160.00 to $230.00 and gave the company a “buy” rating in a report on Thursday, August 6th. BMO Capital Markets raised their target price on shares of Paycom Software from $145.00 to $208.00 and gave the stock a “market perform” rating in a report on Thursday, August 6th. Barclays boosted their target price on shares of Paycom Software from $154.00 to $210.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Cantor Fitzgerald increased their price target on Paycom Software from $135.00 to $195.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Finally, Stifel Nicolaus increased their price target on Paycom Software from $120.00 to $200.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, Paycom Software has an average rating of “Hold” and a consensus price target of $204.69.

Read Our Latest Report on PAYC

(Free Report)

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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On August 13, 2026, Paycom Software Inc (PAYC) shares rose 5.8% to a current price of $223.63. This increase comes amid a strong price performance, with the sto

Oklahoma Sports Hall of Fame and Jim Thorpe Association Proudly Reveal the Paycom Jim Thorpe Award 2026 Preseason Watch List + GuruFocus.com on

Today, Oklahoma Sports Hall of Fame (OSHOF) and Jim Thorpe Association released the prestigious Paycom Jim Thorpe Award Preseason Watch List. This list includes 35 of the nation’s best defensive backs, representing ten conferences and one independent university. The preseason watch list is selected by a screening committee whose members compile a list of up to 50 players based on previous performance in NCAA Division I college football and preseason All-America lists. This list is not final, and players who have outstanding seasons may be added to the semifinalists and finalists lists as the season progresses.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260811079678/en/

Today, Oklahoma Sports Hall of Fame (OSHOF) and Jim Thorpe Association released the prestigious Paycom Jim Thorpe Award Preseason Watch List for 2026.

As the leader of the No. 1 defense in 2025, Ohio State University’s Caleb Downs was the 2025 Paycom Jim Thorpe Award winner. Hoschton, Georgia, native Downs was the third Thorpe Award recipient from the Buckeyes, joining winners Malcolm Jenkins (2008) and Antoine Winfield (1998). The Dallas Cowboys selected Downs with the No. 11 overall pick in the first round of the 2026 NFL Draft.

The Thorpe Award’s 2026 preseason candidates are revealed alphabetically by last name with university, position and class year noted.

2026 Paycom Jim Thorpe Award Preseason Watch List

KJ Bolden, Georgia, Safety, Junior
Austin Brawley, New Mexico, Safety, Senior
Zabien Brown, Alabama, Cornerback, Junior
Mario Easterly, Old Dominion, Safety, Senior
Tre’Quon Fegans, Jacksonville State, Cornerback, Senior
Amare Ferrell, Indiana, Safety, Senior
Brandon Finney Jr., Oregon, Cornerback, Sophomore
Bryce Fitzgerald, Miami, Safety, Sophomore
Chance Gamble, Georgia Southern, Cornerback, Senior
Brent Gordon Jr., Louisiana, Cornerback, Sophomore
Elijah Green, Tulsa, Cornerback, Junior
Brevin Hamblin, Utah State, Safety, Senior
Ashton Hampton, Clemson, Cornerback, Junior
Simeon Harris, Fresno State, Cornerback, Senior
Jyaire Hill, Michigan, Cornerback, Senior
Bray Hubbard, Alabama, Safety, Senior
Jamel Johnson, TCU, Safety, Senior
Kelley Jones, Mississippi State, Cornerback, Senior
Roger Jones Jr., Air Force, Safety, Junior
Earl Little Jr., Ohio State, Safety, Senior
Jelani McDonald, Texas, Safety, Senior
Jaden Mickey, Boise State, Cornerback, Senior
Leonard Moore, Notre Dame, Cornerback, Junior
Caleb Nix, Jacksonville State, Safety, Senior
Chris Peal, Syracuse, Cornerback, Senior
Koi Perich, Oregon, Safety, Junior
Brice Pollock, Texas Tech, Cornerback, Senior
Ellis Robinson IV, Georgia, Cornerback, Sophomore
Faletau Satuala, BYU, Safety, Junior
KT Seay, Delaware, Safety, Senior
Daytione Smith, Marshall, Safety, Senior
Shamir Sterlin, FIU, Safety, Sophomore
Jack Tchienchou, Tulane, Safety, Senior
DJ Walker, Ohio, Safety, Junior
Zach Williams, Tulsa, Safety, Junior

By Conference

AAC (3), ACC (3), Big 12 (3), Big Ten (5), CUSA (4), Independent (1), MAC (1), MW (2), Pac-12 (3), SEC (6), Sun Belt (4)

The Paycom Jim Thorpe Award is awarded to the best defensive back in college football based on performance on the field, athletic ability and character. The award was established in 1986 and is named after history’s greatest all-around athlete, Jim Thorpe. Thorpe excelled as a running back, passer and kicker on the offensive side of the ball, but also stood out as a defensive back. In addition to his legendary performance on the football field, Thorpe played professional baseball and won Olympic gold medals in the decathlon and pentathlon. The Paycom Jim Thorpe Award is universally accepted as one of the nation’s top collegiate sports honors.

The Paycom Jim Thorpe Award is a member of the National College Football Awards Association (NCFAA), which encompasses college football’s most prestigious awards. The NCFAA’s 25 awards have honored nearly 1,000 recipients since 1935. This season, 12 NCFAA awards will honor national players of the week each Tuesday.

Sixteen NCFAA members are unveiling preseason watch lists over a three-week period as the association spearheads a coordinated effort to promote each award’s preseason candidates. Following is the remaining 2026 preseason watch list calendar:

Wed., Aug. 12: Paycom Jim Thorpe Award
Thu., Aug. 13: Butkus Award
Fri., Aug. 14: Ray Guy Award
Mon., Aug. 17: Walter Camp Award
Tue., Aug. 18: Doak Walker Award
Wed., Aug. 19: Biletnikoff Award
Thu., Aug. 20: Davey O’Brien Award
Fri., Aug. 21: Bednarik Award

For more information about the NCFAA and its award programs, visit NCFAA.org or follow on X at @NCFAA and Instagram @TheNCFAA.

Paycom Jim Thorpe Award Important Dates

Wed., Aug. 12: Preseason watch list announced at 11 a.m. CDT/noon EDT

Tue., Oct. 27: Semifinalists announced at 11 a.m. CDT/noon EDT

A screening committee consisting of OSHOF members monitors all defensive backs throughout the season, including watch list players, and narrows the field to up to 15 semifinalists.

Tue., Nov. 24: Finalists announced at 11 a.m. CST/noon EST

The three finalists are submitted to a national panel of over 250 sports writers, sportscasters, former players and coaches who vote to determine the winner of the Paycom Jim Thorpe Award.

Fri., Dec. 11: Winner announced on The Home Depot College Football Awards

The winner will be announced on the ESPN live presentation of The Home Depot College Football Awards at 7 p.m. EST. Other recognized NCFAA awards announced include the Bednarik Award, Biletnikoff Award, Lou Groza Award, Ray Guy Award, Maxwell Award, Davey O’Brien Award, Outland Trophy, Doak Walker Award, Walter Camp Award and others.

Tue., Feb. 9, 2027: Paycom Jim Thorpe Award Banquet honoring the 2026 Winner in Oklahoma City

The official presentation of the Paycom Jim Thorpe Award takes place in Oklahoma City, following The Home Depot College Football Awards. The current winner and all former winners are invited each year to celebrate. Over 600 supporters attend the Paycom Jim Thorpe Award Banquet each year, including many celebrities and dignitaries.

For more information on the Paycom Jim Thorpe Award and past award recipients, please visit www.oklahomasportshalloffame.org.

Paycom Software, Inc. (NYSE: PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, and the Jim Thorpe Museum and Oklahoma Sports Hall of Fame jointly announced in May 2017 an exclusive sponsorship of the Jim Thorpe Award. As a result, the accolade has been named the “Paycom Jim Thorpe Award.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20260811079678/en/

3 Stocks That Benefit if Companies Cut Costs in 2026Paycom Software NYSE: PAYC reported second-quarter results that exceeded its expectations, citing broad-based revenue strength, growing demand for automation and improving operating efficiency. The company also raised its full-year revenue and adjusted EBITDA outlook.

Total revenue rose 10% year over year to $531 million in the second quarter, while recurring and other revenue increased 11% to $505 million. GAAP net income climbed 20% to $107 million, or $2.34 per diluted share. On a non-GAAP basis, net income was $128 million, or $2.78 per diluted share.

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3 Explosive Tech Stocks Breaking Out Right Now Adjusted EBITDA totaled $235 million, producing a 44.2% margin, up 320 basis points from a year earlier. CFO Bob Foster said the company’s automation efforts and use of its own technology are increasing productivity across the business and supporting sustainable margin expansion.

Full-Year Outlook Raised Following its first-half performance, Paycom increased its 2026 guidance. The company now expects total revenue of $2.197 billion to $2.212 billion, representing growth of 7% to 8% from 2025. It expects recurring and other revenue to rise 8% to 9% for the full year.

PayPal’s User Decline Won’t Stop Its Double-Digit UpsideThe outlook includes approximately $105 million of interest on funds held for clients and assumes current interest rates remain in place for the rest of the year. Foster said that even if rates moved higher or lower, the impact on 2026 would be minimal.

Paycom now forecasts full-year adjusted EBITDA of $1.007 billion to $1.022 billion, implying a record 46% adjusted EBITDA margin at the midpoint of the range. Foster also said the company expects free cash flow to exceed $650 million in 2026.

Asked about the improved cash-flow outlook, Foster pointed to broad-based efficiencies in processes and labor. He said the company had been working to bring EBITDA margins and free-cash-flow margins closer together and views the progress as sustainable.

Product Releases Focus on Automation and AI Founder and CEO Chad Richison said Paycom’s full-solution automation and service model continue to drive client return on investment. He said demand for automation is increasing and that the company is expanding its capabilities through artificial intelligence and automated decisioning.

During the year, Paycom introduced a career and succession planning solution designed to help organizations identify talent gaps, assess readiness and develop potential successors. Richison said client adoption has been solid.

In July, the company launched Asset Management, a product that enables businesses to track and manage physical and digital assets. Richison said the offering expands Paycom into what he described as a new multibillion-dollar total addressable market and represents the company’s 45th product developed, hosted, distributed and serviced during its nearly 28-year history.

President Shane Hadlock highlighted Project Arc, which he called Paycom’s largest system-wide release. The update added customization features intended to give users more tailored views of information and action items, while also improving performance and scalability. Hadlock cited one client with more than 10,000 employees that reported system performance had increased fourfold.

Hadlock also discussed Paycom’s AI offering, I Want, which automates events and tasks within the system. Richison said I Want is frequently the first interaction new employees have with Paycom’s platform and emphasized that the company’s focus is on providing accurate responses rather than deploying AI solely for its own sake.

Sales Capacity, Bookings and Client Demand Richison said second-quarter revenue strength was broad-based and did not stem from one-time factors. Products launched last year are beginning to contribute to results, while the more recently released career and succession planning and Asset Management products are expected to contribute more in future periods.

He said bookings came in as expected during the quarter. Paycom’s sales include both sales to new prospects and sales to existing customers, though the company has also implemented in-app purchasing capabilities that can bypass the traditional booked-sales process for certain products.

Management said Paycom’s sales pipeline remains strong and that new sales representatives are reaching productivity faster than they have historically. Richison said the company has expanded teams from eight to 10 representatives and has added more than 100 new sales representatives. Existing representatives are expected to remain more productive in the near term, while the larger new-representative cohort is expected to support future booked sales as it develops.

The company said client employment growth remained stable during the first half, consistent with levels seen in recent years outside of the COVID-19 period.

Capital Returns and Balance Sheet Paycom repurchased approximately 2.6 million shares, or about 6% of shares outstanding, for $346 million during the second quarter. Over the first six months of 2026, the company repurchased nearly 11 million shares for approximately $1.4 billion, reducing shares outstanding by 20%.

Paycom ended the quarter with roughly 44 million shares outstanding and $1.66 billion remaining under its repurchase authorization. The company also paid approximately $18 million in cash dividends during the quarter. Its board approved a quarterly dividend of $0.375 per share on Aug. 3, payable in early September.

At quarter-end, Paycom had $198 million in cash and cash equivalents. It had drawn $900 million on its $2.1 billion revolving credit facility to support year-to-date repurchases. Average daily funds held for clients rose 9% year over year to approximately $2.9 billion.

About Paycom Software (NYSE:PAYC)Paycom Software, Inc NYSE: PAYC is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom's software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company's core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Posted by Defense World Staff on Aug 6th, 2026

Empowered Funds LLC increased its holdings in Paycom Software, Inc. (NYSE:PAYC – Free Report) by 592.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 20,833 shares of the software maker’s stock after acquiring an additional 17,826 shares during the period. Empowered Funds LLC’s holdings in Paycom Software were worth $2,532,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the stock. Mackenzie Financial Corp grew its holdings in Paycom Software by 4.0% during the third quarter. Mackenzie Financial Corp now owns 1,624 shares of the software maker’s stock worth $338,000 after buying an additional 63 shares in the last quarter. Boyd Watterson Asset Management LLC OH raised its position in Paycom Software by 0.8% in the 4th quarter. Boyd Watterson Asset Management LLC OH now owns 10,662 shares of the software maker’s stock valued at $1,699,000 after buying an additional 86 shares during the last quarter. Lido Advisors LLC lifted its stake in Paycom Software by 1.4% during the 4th quarter. Lido Advisors LLC now owns 6,286 shares of the software maker’s stock valued at $1,081,000 after acquiring an additional 87 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Paycom Software by 2.2% during the 4th quarter. Janus Henderson Group PLC now owns 4,090 shares of the software maker’s stock valued at $652,000 after acquiring an additional 88 shares in the last quarter. Finally, Evoke Wealth LLC boosted its holdings in Paycom Software by 2.8% during the 4th quarter. Evoke Wealth LLC now owns 3,335 shares of the software maker’s stock worth $531,000 after acquiring an additional 90 shares during the last quarter. Institutional investors and hedge funds own 87.77% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. Citigroup boosted their price target on shares of Paycom Software from $120.00 to $136.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Mizuho upped their price objective on shares of Paycom Software from $120.00 to $130.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. UBS Group dropped their target price on shares of Paycom Software from $210.00 to $183.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. Finally, BTIG Research lifted their target price on shares of Paycom Software from $140.00 to $160.00 and gave the stock a “buy” rating in a research report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $159.75.

Read Our Latest Stock Analysis on PAYC

Paycom Software Stock Performance Shares of PAYC opened at $174.99 on Thursday. Paycom Software, Inc. has a 1 year low of $104.90 and a 1 year high of $248.95. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.08 and a quick ratio of 1.08. The stock’s fifty day moving average price is $141.40 and its two-hundred day moving average price is $133.66. The firm has a market cap of $8.33 billion, a PE ratio of 20.23, a PEG ratio of 1.49 and a beta of 0.76.

Paycom Software (NYSE:PAYC – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The software maker reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.40. Paycom Software had a return on equity of 28.34% and a net margin of 22.44%.The company had revenue of $531.20 million during the quarter, compared to the consensus estimate of $513.12 million. During the same quarter in the prior year, the company earned $2.06 EPS. The firm’s quarterly revenue was up 9.8% compared to the same quarter last year. On average, equities research analysts forecast that Paycom Software, Inc. will post 9.37 EPS for the current year.

Paycom Software Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 24th will be paid a $0.375 dividend. The ex-dividend date is Monday, August 24th. This represents a $1.50 annualized dividend and a dividend yield of 0.9%. Paycom Software’s dividend payout ratio (DPR) is presently 17.34%.

About Paycom Software (Free Report)

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

Read More Five stocks we like better than Paycom Software SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding PAYC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Paycom Software, Inc. (NYSE:PAYC – Free Report).

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Key Takeaways Paycom raised 2026 revenue guidance to $2.197B-$2.212B and EBITDA guidance to $1.007B-$1.022B. PAYC expects about $100M in 2026 R&D savings and over $30M in avoided IWant response fees from AI spending.Paycom added over 100 sales positions, launched Asset Management and repurchased $346M of shares in Q2. Paycom Software, Inc. (PAYC - Free Report) used its second-quarter 2026 call to frame automation as a driver of client value and internal efficiency. Management raised its full-year revenue and adjusted EBITDA outlook after results exceeded expectations.

Non-GAAP earnings of $2.78 per share topped the Zacks Consensus Estimate of $2.28, while revenues of $531.2 million exceeded the $512.3 million consensus. Executives emphasized that the strength was broad-based rather than tied to a one-time factor.

PAYC Raises Full-Year OutlookChief financial officer Robert Foster raised 2026 revenue guidance to $2.197 billion to $2.212 billion, representing 7% to 8% growth. Recurring and other revenues are expected to increase 8% to 9%.

Foster projected adjusted EBITDA of $1.007 billion to $1.022 billion, with a record margin of about 46% at the midpoint. The outlook includes approximately $105 million of interest on funds held for clients.

During the Q&A, Foster said guidance assumes no rate changes for the rest of 2026, while any change would have a minimal current-year effect. He also expects free cash flow to exceed $650 million.

Paycom Calls the Beat Broad-BasedFounder, chairman and CEO Chad Richison said the upside came from the same revenue sources that have historically supported the business. He said no special item or isolated event drove the quarter.

Revenues increased 9.8% year over year, while recurring and other revenue rose 11.0%. Adjusted EBITDA reached $235.0 million, and its margin expanded 320 basis points to 44.2%.

Asked about slower growth embedded in the annual outlook, Richison said pipelines remain very strong. He also described client employment growth as stable and consistent with the assumptions used in guidance.

PAYC Converts AI Spending Into SavingsRichison said Paycom spent more than $100 million in 2025 to prepare data centers to host its own artificial intelligence models. The infrastructure also provided capacity that improved system performance.

Richison expects that investment to produce about $100 million of research and development savings in 2026, plus more than $30 million of avoided third-party response fees for IWant.

CFO Robert Foster said improved conversion from adjusted EBITDA to free cash flow reflects broad-based process and labor efficiencies. Richison added that changes to development structure and product-release processes have raised R&D productivity.

Paycom Widens Its Product FootprintRichison highlighted adoption of Career and Succession Planning and the July launch of Asset Management. He called Asset Management an entry into a new multibillion-dollar addressable market and Paycom's 45th internally developed product.

President and chief client officer Terrell Hadlock described Project Arc as the largest systemwide release in company history. The update added customization and scalability, with one client reporting a fourfold performance improvement.

Richison said the newest products made little contribution to second-quarter revenues but should contribute more over time. He also stressed that IWant adoption continues to expand, with accuracy remaining the priority for new AI functions.

PAYC Builds Sales Capacity and Returns CapitalRichison said the sales force is adapting to a more detailed process built around demonstrating full-solution return on investment. Paycom expanded teams from eight to 10 representatives, adding more than 100 sales positions.

Richison said bookings met management's expectations, while new representatives are reaching productivity faster than prior classes. Existing-representative productivity is also improving as pipelines expand across territories.

Foster said Paycom repurchased about 2.6 million shares for $346 million during the quarter. First-half repurchases totaled nearly 11 million shares for approximately $1.4 billion, reducing shares outstanding by 20%.

Paycom's Priorities After the CallManagement's message centered on pairing product expansion and sales capacity with continued automation across development, service and internal processes. The raised outlook reflects first-half results and greater visibility into the rest of 2026.

The call showed that Paycom is pursuing growth alongside margin expansion and capital returns. Executives remained confident in demand, pipeline development and the longer-term contribution from recently introduced products.

Zacks Rank and Style Score SignalsPAYC carries a Zacks Rank #2 (Buy), along with Value, Growth and VGM Scores of B. Under the Zacks framework, a top-two Rank combined with A or B Style Scores represents a favorable alignment of estimate-revision and style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Momentum Score is C. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results, so the current signal is not fixed.
 

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.

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OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom,” “we” and “our”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended June 30, 2026. “Our strong second-quarter results came in ahead of expectations, reflecting the strength of our automation strategy and disciplined execution,” said Paycom's founder and CEO, Chad Richison. “We are building strong momentum through new product i.

Paycom Software (PAYC - Free Report) came out with quarterly earnings of $2.78 per share, beating the Zacks Consensus Estimate of $2.28 per share. This compares to earnings of $2.06 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +21.93%. A quarter ago, it was expected that this maker of human-resources and payroll software would post earnings of $2.93 per share when it actually produced earnings of $3.15, delivering a surprise of +7.51%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Paycom, which belongs to the Zacks Internet - Software industry, posted revenues of $531.2 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.69%. This compares to year-ago revenues of $483.6 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Paycom shares have added about 10% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for Paycom?While Paycom has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Paycom was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.33 on $533.57 million in revenues for the coming quarter and $10.79 on $2.19 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Datadog (DDOG - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This data analytics and cloud monitoring company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +26.1%. The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level.

Datadog's revenues are expected to be $1.08 billion, up 30.6% from the year-ago quarter.

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OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, announced today that its Board of Directors declared a cash dividend in the amount of $0.375 per share of common stock, to be paid on Sept. 8, 2026, to all stockholders of record as of the close of business on Aug. 24, 2026.

About Paycom

Paycom Software, Inc. (NYSE: PAYC) is a cloud-based human capital management software provider that allows organizations of all sizes across the U.S. and internationally to set numerous HR and payroll tasks to “automatic” through employee-first technology. Built on a truly single database, Paycom’s full-solution automation manages the entire employment life cycle, helping organizations streamline processes and improve data accuracy. With its industry-first AI engine, IWant™, Paycom provides instant access to accurate employee data without requiring users to navigate or learn the software. For over 25 years, Paycom has been repeatedly recognized by third‑party reviewers as a leading payroll and HCM solution.

More News From Paycom Software, Inc.

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Key Takeaways Paycom Software is expected to post Q2 EPS of $2.28 on revenues of about $512.3 million.PAYC's recurring revenues are modeled at $485.7 million, up 6.7%, aided by AI product adoption.Beti and GONE may aid client gains, while layoffs and hiring slowdowns could pressure payroll demand. Paycom Software, Inc. (PAYC - Free Report) is set to report second-quarter 2026 results after market close on Aug. 5.

The Zacks Consensus Estimate for second-quarter earnings is pinned at $2.28 per share, indicating a 10.7% year-over-year increase. The consensus estimate for the bottom line has remained unchanged over the past 60 days.

The Zacks Consensus Estimate for Paycom Software’s second-quarter revenues is pegged at approximately $512.3 million, suggesting a rise of 5.9% from the year-ago quarter’s sales of $483.6 million.

Paycom Software’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, the average surprise being 5.7%.

Let’s see how things are shaping up for the upcoming quarterly results.

Factors Likely to Have Shaped PAYC’s Q2 PerformancePaycom Software’s second-quarter performance is likely to have benefited from an expanding client base through its sustained focus on enhancing its product portfolio and a high-margin recurring revenue business model. The enhancement of its offerings through artificial intelligence (AI) implementation is likely to have gained new clients, driving the company’s revenues. Our model estimate for PAYC’s recurring revenues is pegged at $485.7 million, suggesting year-over-year growth of 6.7%.

Paycom Software’s second-quarter results are expected to reflect the benefits of the growing adoption of IWant, the company’s new AI command-driven tool that enhances user interaction through voice and text-based navigation. IWant’s command-driven AI engine is expected to increase usage among non-daily users while also delivering better return on investment for its clients. The company’s innovative solutions are likely to have positively impacted the to-be-reported quarter’s performance.

Paycom Software’s focus on adding more functionality to its Beti and GONE solutions, while delivering a seamless employee experience, enables it to attract new customers. Beti reduces administrative burdens, enabling employees to manage their payroll requirements independently, while GONE takes care of time-off requests. Beti reduces payroll processing labor by up to 90% and cuts the time spent correcting payroll errors by up to 85%, improving efficiency and return on investment for clients.

Despite strong product innovation, Paycom Software’s growth is expected to have been negatively impacted by a weaker macroeconomic environment. Geopolitical tensions and economic uncertainty are anticipated to have created near-term revenue headwinds. Layoffs and hiring slowdowns in various industries could have weighed on transaction volumes while reducing the overall demand for payroll services. Together, these factors are expected to have weighed on the company's second-quarter overall performance.

Q2 Earnings Whispers for Paycom SoftwareOur proven model does not conclusively predict an earnings beat for PAYC this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Paycom Software currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are a few companies worth considering in the broader Zacks Computer and Technology sector, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:

SanDisk Corporation (SNDK - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +4.13% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for SanDisk’s fourth-quarter earnings is pegged at $34.24 per share, indicating a year-over-year surge of 11,707%. Earnings estimates for the quarter have been revised upward by 5.7% over the past 60 days. Shares of SanDisk have soared 457.3% year to date (YTD).

Western Digital Corporation (WDC - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 5. Currently, it has an Earnings ESP of +3.22% and sports a Zacks Rank #1.

The Zacks Consensus Estimate for Western Digital’s fourth-quarter earnings is pegged at $3.35 per share, calling for a year-over-year increase of 101.8%. Earnings estimates for the quarter have been revised upward by 3 cents in the past 30 days. Shares of Western Digital have surged 217.5% YTD.

MKS Inc. (MKSI - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5. Currently, it has an Earnings ESP of +2.64% and carries a Zacks Rank #2.

The Zacks Consensus Estimate for MKS’ second-quarter earnings is pegged at $2.93 per share, calling for a year-over-year jump of 65.5%. Earnings estimates for the quarter have been revised northward by a penny in the past 30 days. Shares of MKS have rallied 83.5% YTD.

On July 28, 2026, Paycom Software Inc (PAYC) shares rose by 6.9% today, bringing the current price to $161.72. The stock has shown significant movement, with a

Posted by Defense World Staff on Jul 26th, 2026

California Public Employees Retirement System trimmed its stake in shares of Paycom Software, Inc. (NYSE:PAYC – Free Report) by 44.2% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 71,320 shares of the software maker’s stock after selling 56,535 shares during the period. California Public Employees Retirement System owned 0.15% of Paycom Software worth $8,668,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of PAYC. Reinhart Partners LLC. boosted its holdings in shares of Paycom Software by 887.4% during the 4th quarter. Reinhart Partners LLC. now owns 598,323 shares of the software maker’s stock valued at $95,351,000 after purchasing an additional 537,726 shares during the last quarter. Contour Asset Management LLC purchased a new position in shares of Paycom Software during the fourth quarter valued at about $60,333,000. Two Sigma Investments LP grew its position in shares of Paycom Software by 228.7% during the third quarter. Two Sigma Investments LP now owns 532,124 shares of the software maker’s stock valued at $110,756,000 after purchasing an additional 370,219 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Paycom Software by 28.2% in the fourth quarter. Invesco Ltd. now owns 1,559,682 shares of the software maker’s stock worth $248,551,000 after purchasing an additional 343,494 shares during the last quarter. Finally, River Road Asset Management LLC increased its holdings in shares of Paycom Software by 481.9% in the fourth quarter. River Road Asset Management LLC now owns 392,403 shares of the software maker’s stock worth $62,533,000 after purchasing an additional 324,970 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Analysts Set New Price Targets A number of equities research analysts recently commented on PAYC shares. Zacks Research upgraded Paycom Software from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. BMO Capital Markets raised their price target on Paycom Software from $137.00 to $145.00 and gave the company a “market perform” rating in a report on Thursday, May 7th. Weiss Ratings raised Paycom Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 16th. TD Cowen decreased their price objective on Paycom Software from $154.00 to $149.00 and set a “buy” rating on the stock in a report on Friday, June 26th. Finally, Citigroup increased their target price on Paycom Software from $120.00 to $136.00 and gave the company a “neutral” rating in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $159.75.

Read Our Latest Analysis on PAYC

Paycom Software Stock Performance Paycom Software stock opened at $145.71 on Friday. The company’s 50-day moving average price is $136.71 and its 200-day moving average price is $133.26. Paycom Software, Inc. has a twelve month low of $104.90 and a twelve month high of $248.95. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 0.83. The company has a market cap of $6.94 billion, a PE ratio of 16.84, a price-to-earnings-growth ratio of 1.23 and a beta of 0.80.

Paycom Software (NYSE:PAYC – Get Free Report) last announced its earnings results on Wednesday, May 6th. The software maker reported $3.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.99 by $0.16. Paycom Software had a net margin of 22.44% and a return on equity of 28.34%. The firm had revenue of $571.80 million for the quarter, compared to analysts’ expectations of $564.37 million. During the same period in the prior year, the company earned $2.80 EPS. The business’s revenue was up 7.8% compared to the same quarter last year. On average, equities research analysts forecast that Paycom Software, Inc. will post 9.37 EPS for the current fiscal year.

Paycom Software Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, June 8th. Shareholders of record on Tuesday, May 26th were paid a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Tuesday, May 26th. Paycom Software’s payout ratio is presently 17.34%.

Paycom Software Company Profile (Free Report)

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.

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On July 21, 2026, Paycom Software Inc (PAYC) shares fell 3.7% today, closing at $144.22. The stock has experienced a 52-week range between $104.90 and $248.95,

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (NYSE: PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, today announced the launch of its latest tool, Asset Management, the industry's first unified seating and property management tool built directly into HCM software to support and automate the entire asset life cycle. The new tool connects workspace and property details based on employee role or asset location. By tracking asset owners.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.

PAYC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.96; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $10.73 per share. PAYC boasts an average earnings surprise of +5.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PAYC should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores?Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks RankA proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) full-solution software for organizations to manage payroll and HR all in one place.

PAYC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. PAYC has a Momentum Style Score of B, and shares are up 5.6% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $10.73 per share. PAYC boasts an average earnings surprise of +5.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYC should be on investors' short list.

(We are reissuing this article to correct a mistake. The original article, issued on July 8th, should no longer be relied upon.)

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.

PAYC is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. PAYC has a Momentum Style Score of B, and shares are up 5.6% over the past four weeks.

For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $10.73 per share. PAYC boasts an average earnings surprise of +5.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYC should be on investors' short list.

Key Takeaways PAYC is expanding payroll and HR automation while adding clients and growing cross-selling. PCTY is enhancing its AI-powered HCM platform with broader AI Assistant capabilities. FA provides HR software, screening and identity solutions and boasts improving earnings estimates. The human capital management (HCM) software solution industry itself is undergoing a structural transformation, driven by digital innovation, evolving workforce demographics and the rising adoption of flexible work models.

Technology is central to this shift. AI-driven recruitment platforms, virtual assessments and advanced analytics are improving placement speed, reducing hiring costs and enhancing match quality, factors that can significantly expand margins and improve ROI (return on investment).

Here, we recommend three HCM software solutions providers with a favorable Zacks Rank for investment. These stocks have strong short-term price upside potential. The companies are: Paycom Software Inc. (PAYC - Free Report) , Paylocity Holding Corp. (PCTY - Free Report) and First Advantage Corp. (FA - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks in the past month.

Image Source: Zacks Investment Research

Paycom Software Inc.Zacks Rank #1 Paycom Software is benefiting from an employee-first, single-database HCM platform that pushes automation deeper into payroll and HR workflows. PAYC’s tools, such as Beti, GONE and IWant, help clients reduce manual work and raise engagement, supporting retention and a long runway as automation adoption expands. 

New client additions and a continued focus on cross-selling to existing clients are aiding revenue growth and helping PAYC win new customers. PAYC is also returning substantial capital through buybacks and dividends, which can lift per-share value creation.

Paycom Software has an expected revenue and earnings growth rate of 6.7% and 15.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% over the past 30 days.

The short-term average price target of brokerage firms represents an increase of 22.1% from the last closing price of $124.48. The brokerage target price is currently in the range of $120-$195. This indicates a maximum upside of 56.7% and a maximum downside of 3.6%. The risk/reward ratio is 1:15.8. 

Paylocity Holding Corp.Zacks Rank #1 Paylocity Holding benefits from a strong, AI-enabled human capital management platform that improves automation, decision-making and overall user experience, making the solution deeply embedded for mid-market customers.

PCTY’s multi-pronged AI strategy encompasses personalized recommendations, sentiment analysis, predictive workforce insights, and optimized scheduling alongside generative capabilities. PCTY’s AI Assistant is currently available to all clients as part of core HR and Payroll offerings, with expanded functionality rolling out.

Paylocity Holding has an expected revenue and earnings growth rate of 7.5% and 6.5%, respectively, for the next year (ending June 2027). The Zacks Consensus Estimate for next year’s earnings has improved 1.5% over the past 30 days. 

The short-term average price target of brokerage firms represents an increase of 54.5% from the last closing price of $100.48. The brokerage target price is currently in the range of $112-$250. This indicates a maximum upside of 148.8% and no downside. The risk/reward ratio is extremely favorable.

First Advantage Corp.Zacks Rank #2 First Advantage is a provider of software and data in the human resource technology industry. FA’s platforms offer data and APIs to power comprehensive employment background screening, digital identity solutions and verification services.

First Advantage has an expected revenue and earnings growth rate of 6.4% and 18.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% over the last 60 days. 

The short-term average price target of brokerage firms represents an increase of 8.2% from the last closing price of $16.76. The brokerage target price is currently in the range of $17-$20. This indicates a maximum upside of 19.3% and no downside. The risk/reward ratio is extremely favorable.

Investors looking for stocks in the Internet - Software sector might want to consider either Paycom Software (PAYC) or Palantir Technologies Inc. (PLTR). But which of these two stocks presents investors with the better value opportunity right now?

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.

PAYC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 11.6; value investors should take notice.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.29 to $10.66 per share. PAYC boasts an average earnings surprise of +5.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PAYC should be on investors' short list.