Paycom leapfrogs energy companies in size
Paycom Software's rapid growth over the past year has put it squarely in the list of Oklahoma's top three biggest public companies.
The provider of human capital management services and software has seen its market capitalization more than double since this time last year, rising from just over $7 billion to about $15.3 billion. A company's market cap is the number of outstanding shares multiplied by the stock price and is used as an indicator of a company's size.
Paycom closed at $271.80 a share on Thursday. A year ago, its stock was trading at about $120.
Since June, Paycom rose from sixth on the list of biggest Oklahoma companies as other businesses felt the squeeze of a struggling energy market. Both Magellan Midstream Partners and Continental Resources lost market cap and their spots on the list as Paycom grew. Continental shrank by nearly $3 billion in the past six months alone and now sits at less than $13 billion.
The Williams Companies is now the state's second-largest publicly traded business with a market cap of $28.12 billion after shrinking nearly $6 billion since June, or more than 17%.
ONEOK begins the year with the top spot, leaping over Williams with the biggest market cap gain of $2.75 billion over the past six months. The market value of the company's shares is about $31 billion, nearly twice as much as Paycom.
Analysts have seen positive signs of financial growth as Paycom beat its earnings estimates and reported positive revenue figures in 2019. Paycom also has continued its geographic expansion and has received positive feedback about new tools released for its clients. Wall Street's consensus trends toward a recommendation to hold the stock rather than buy or sell, but analysts' forecasts suggest the stock is expensive with a average price target below its current value.
Despite the overall growth, 2019 hasn't been a perfect year for Paycom investors. The market appeared to shift away from high-growth stocks in late summer. The company's stock price fell to less than $200 per share in October before bouncing back to its record-high value a month later.