Selected Article

Best performing S&P500 stock of the week

by Tim Straiton
Saturday 17th October 2020

Paycom Software - Current price $381.80

Paycom is a cloud-based payroll management solution that enables organizations to automate payroll processes. The platform stores all employee-related data in one place and ensures that changes are reflected in real-time across the system. The product also provides an in-person client specialist to each customer who requests help. Paycom is able to create reports that can be imported to other accounting solutions. The expense management feature automates the expense reimbursement process and defines rules, categories and parameters for employees to monitor claims. Employees can also upload bills related to expenses by using a self-service portal available within the tool.


Is it time to buy?


Our trading model went long on Paycom software at 311.30 on September 30th. We have a protective stop in place, currently at 328.16.

For those thinking of investing in this company, we would cast a view on the current technical condition of this stock. The 14 day relative strength index is now at 81% which is well into overbought territory. In addition the stock is 26% above the rising 200 day rising moving average now at 281.78. Recent price development has been unable to adhere to the upper Bollinger band. These three observations lead us to the assumption that a correction to the downside is likely. Therefore we would expect to accumulate this attractive stock at considerably lower levels in the near future.


 

Charts courtesy of