Founded in 1998 and valued at $6.7 billion, Paycom Software, Inc. (PAYC) 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. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement.

Shares of PAYC have lagged behind the broader market over the past 52 weeks. PAYC stock has declined 42.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.9%. Moreover, shares of the company are down 24.9% on a YTD basis, compared to SPX's marginal decline.

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Narrowing the focus, PAYC stock has also underperformed the State Street Technology Select Sector SPDR ETF (XLK), which has increased 18.1% over the past 52 weeks.

On Feb. 11, PAYC shares dropped nearly 5% following the release of its Q4 2025 earnings. PAYC’s revenue increased 10.2% year-on-year and came in at $542.9 million, in line with analyst estimates. Moreover, its adjusted EPS was $2.45, in line with Wall Street estimates. However, investor confidence was shaken by the company's failure to meet full-year revenue guidance and by indications of a slowdown in demand, as indicated by its weaker revenue guidance for next year.

For the fiscal year ending in December 2026, analysts expect PAYC's EPS to rise 13.5% year-over-year to $8.09. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while missing on one occasion.

PAYC has a consensus “Moderate Buy” rating overall. Of the 21 analysts covering the stock, opinions include six “Strong Buys,” 14 “Holds,” and one “Strong Sell.”

On Feb. 12, Jefferies analyst Samad Samana maintained a “Hold” rating on Paycom Software and lowered its price target to $130 from $190.

The mean price target of $173.06 represents a premium of 44.5% to PAYC's current levels. The Street-high price target of $250 implies a potential upside of 108.8% from the current price levels.

On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com