$PAYC attractive entry point (3/5) Long
Paycom Software, Inc.NYSE
Description
⋅ Conviction: 3/5
could drop further to match RSI hitting solid line (oversold)
General Thesis
- weekly RSI almost touching oversold levels, which have been pretty good entry points
- Currently hovering around support line of channel established in July 2014
Growth
- Gross margins (80%) is a lot higher than past few years
- Revenue growth (30%) is about historical average, bounce from lows in 2020
Value
- P/S around 75th percentile, although very high compared to rest of market
- P/FCF is quite high
Potential Risks
- could drop to support (June 2018)
- history is a little short, only goes back to 2014