Core Viewpoint - Paylocity (PCTY) has experienced a significant downtrend, with a 26.2% decline over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PCTY's current RSI reading is 26.9, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. Group 2: Fundamental Analysis - Analysts covering PCTY have shown strong consensus in raising earnings estimates, with a 2.4% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PCTY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Paylocity Named a Top HR System in Sapient Insights Group’s 28th Annual HR Systems Survey Report Paylocity Named a Top HR System in Sapient Insights Group’s 28th Annual HR Systems Survey Report Key Takeaways: Paylocity is recognized as a Top HR System in Sapient Insights Group’s 28th Annual HR Systems Survey Report – Voice of the CustomerSurvey is based on feedback from 4,500+ organizations worldwidePaylocity Placed First for User Experience in: Time and Attendance (Mid-Market)Analytics (SMB) Paylocity ...

Core Viewpoint - Paylocity Holding Corporation (NASDAQ:PCTY) is identified as one of the top beaten-down software stocks with significant upside potential, despite a lowered price target from $188 to $178, indicating a 74.5% upside from current levels [1]. Financial Performance - For Q2 fiscal 2026, adjusted EBITDA reached $142.7 million with a margin of 34.3%, exceeding guidance by $7.2 million, which led to an improved margin outlook for FY 2026 [2]. - GAAP gross profit was reported at $282.1 million, with net income of $50.2 million and operating income of $70.4 million [2]. - The free cash flow margin was approximately 24% over the last 12 months, and the company repurchased about 690,000 shares for approximately $100 million during the quarter, with $400 million remaining in its share repurchase program [2]. Revenue Outlook - Following the strong Q2 results, Paylocity raised its fiscal 2026 revenue outlook to a range of $1.732 billion to $1.742 billion, with recurring and other revenue guidance adjusted to $1.620 billion to $1.630 billion [3]. Company Overview - Paylocity offers cloud-based human capital management, spend management solutions, and payroll software, serving the workforce across the United States, along with client services, implementation & training, and tax and regulatory services [4].

Core Insights - Paylocity Holding Corporation (PCTY) is recognized as a strong investment opportunity, ranking fifth among the 15 Best Strong Buy Tech Stocks to Invest In [1] - Several financial institutions have adjusted their price targets for PCTY, reflecting a mix of strong performance and cautious outlooks [2][3] Financial Performance - Paylocity reported strong results with notable progress in margins and free cash flow, prompting Baird to lower its price target to $220 from $245 while maintaining an Outperform rating [1][8] - TD Cowen also lowered its price target to $178 from $188 but maintained a Buy rating, citing solid Q2 performance and a strong competitive position supported by AI-driven advantages [2] - BMO Capital reduced its price target to $150 from $185, describing the quarter as solid but noting lighter-than-expected recurring growth upside [3] Future Projections - On February 5, Paylocity revised its fiscal year 2026 forecast, estimating recurring and other revenue between $1.62 billion and $1.63 billion, indicating a growth of approximately 10% to 11% over fiscal 2025 [4] - The company anticipates adjusted EBITDA to fall between $622.5 million and $630.5 million, demonstrating sustained operational excellence [4] Company Overview - Paylocity is a U.S. provider of cloud-based payroll and human capital management (HCM) software, offering a range of solutions to help mid-market organizations streamline workforce operations [5]

Core Insights - Paylocity Holding Corporation (NASDAQ:PCTY) is identified as one of the most oversold stocks on NASDAQ, with a Buy rating reiterated by Mizuho and a price target set at $150.00 [1] - The company reported fiscal Q2 2026 financial results, showing recurring and other revenue of $387.0 million, an 11.3% increase year-over-year, and total revenue of $416.1 million, up 10.4% compared to fiscal Q2 2025 [1] - Paylocity demonstrated strong cash flow performance, with a trailing twelve months net cash provided by operating activities margin of 28.3% and a free cash flow margin of 23.6% [1] Rating Updates - Following the financial results, Baird adjusted its price target for Paylocity to $220 from $245 while maintaining an Outperform rating, citing progress on margins and free cash flow [3] - TD Cowen also revised its price target to $178 from $188, keeping a Buy rating, and noted the company's strong fiscal Q2 performance and positive outlook regarding AI displacement and valuation [3] Company Overview - Paylocity develops and provides cloud-based software solutions, including payroll, human capital management, benefits administration, time labor tracking, and talent management [4]

Core Viewpoint - The article suggests that several human capital management (HCM) technology stocks are currently in oversold territory and may present buying opportunities following a strong U.S. jobs report in January, where 130,000 jobs were added, exceeding expectations of 68,000-75,000, and the unemployment rate decreased to 4.3% from an expected 4.4% [1]. Group 1: Workday (WDAY) - Workday is identified as the largest global HCM applications vendor, with its stock down nearly 50% from its 52-week high of $281 per share [4][5]. - Despite slower annual revenue growth, a 12% increase is projected for FY26 and FY27, with revenue approaching $10 billion [5]. - Annual earnings are expected to rise by 24% this year and another 16% in FY27 to $10.57 per share, with the stock trading at its lowest forward earnings multiple of 14X since becoming profitable [6]. Group 2: Paylocity (PCTY) - Paylocity, which provides cloud-based payroll and HCM software solutions, has seen its stock price cut in half from a one-year high of $218 per share [9]. - The stock is considered affordable, with single-digit growth appealing at a 15X forward earnings multiple, and it recently reported Q2 EPS of $1.85, exceeding expectations of $1.57 and up 21% from $1.52 a year ago [10]. Group 3: Automatic Data Processing (ADP) - ADP is recognized as a diverse provider of HCM technology solutions, with its stock down more than 30% from its 52-week high of $329 per share [12]. - The stock is trading at a reasonable 20X forward earnings multiple, with projected EPS growth of over 9% for FY26 and FY27 [13]. - ADP is forecasted to have 5% annual revenue growth, with strong financial figures, cash flow, and recurring revenue, and is noted as a Dividend King with a current annual yield of 3.02% [14][15].

Core Viewpoint - The article discusses the potential investment opportunities in 13 oversold NASDAQ stocks, highlighting the overall strength of the economy and the broadening market trends since late October 2022 [2][3][5]. Economic Context - Richard Bernstein, CEO of Richard Bernstein Advisors, emphasizes that the nominal GDP growth exceeded 8% in the last quarter, a level not seen since 2006, indicating a strong economy [2][3]. - The market is beginning to broaden, reflecting stronger corporate profits than previously anticipated [3]. Company Insights - Paylocity Holding Corporation (NASDAQ:PCTY) is identified as one of the most oversold NASDAQ stocks, with an analyst upside of 40.79% and 44 hedge fund holders [10]. - The company reported fiscal Q2 2026 results with recurring revenue of $387.0 million, an 11.3% increase year-over-year, and total revenue of $416.1 million, up 10.4% compared to fiscal Q2 2025 [10]. - Paylocity's cash flow metrics are strong, with a net cash provided by operating activities margin of 28.3% and a free cash flow margin of 23.6% [10]. Analyst Ratings - Following the fiscal results, Mizuho reiterated a Buy rating with a price target of $150.00, while Baird adjusted its price target to $220 from $245, maintaining an Outperform rating [10][11]. - TD Cowen also adjusted its price target to $178 from $188, affirming a Buy rating, citing strong fiscal Q2 performance and positive outlook on margins and cash flow [11]. Business Model - Paylocity develops and provides cloud-based software solutions, including payroll, human capital management, benefits administration, and talent management [12].

Core Viewpoint - Paylocity (PCTY) has experienced a significant decline of 24.8% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - PCTY's current RSI reading is 20.7, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for PCTY have increased by 1% over the last 30 days, which often correlates with price appreciation in the near term [7]. - PCTY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].

Core Viewpoint - Paylocity (PCTY) is a cloud payroll and human capital management (HCM) software provider based in the US, with a history of coverage since 2020 [1]. Group 1 - Paylocity has been followed for multiple years, indicating a sustained interest in its performance and market position [1].

Core Viewpoint - Baird has lowered the price target for Paylocity (PCTY) to $220 from $245 while maintaining an Outperform rating on the shares, indicating a positive outlook despite the price adjustment [1] Summary by Category Price Target Adjustment - The price target for Paylocity has been reduced to $220 from $245 [1] Rating - Baird continues to hold an Outperform rating on Paylocity shares, suggesting confidence in the company's performance [1] Financial Performance - The model update by Baird follows results that demonstrated significant improvements in margins and free cash flow for Paylocity [1]