Paycom Software (PAYC), a human resources and payroll software company, demonstrates a strong track record of beating earnings estimates with an average surprise of 14.72% over the last two quarters. The stock currently has a positive Earnings ESP of +4.01% combined with a Zacks Rank #3 (Hold), suggesting another earnings beat is likely in the near term.

The article highlights two computer and technology stocks with positive Earnings Surprise Prediction (ESP) metrics that may deliver positive earnings surprises: Paycom Software (PAYC) with a +4.01% ESP ahead of its November 4, 2026 earnings report, and Palo Alto Networks (PANW) with a +0.82% ESP before its November 18, 2026 earnings release. Both stocks carry a Zacks Rank #3 (Hold) rating.

Zacks highlights two technology stocks with positive Earnings Surprise Prediction (ESP) metrics that could beat quarterly earnings expectations. ASML, a Hold-rated stock, has a +5.53% ESP ahead of its October 14, 2026 earnings report. Paycom Software, rated Strong Buy, shows a +4.01% ESP before reporting on November 4, 2026. Both stocks' positive ESP signals suggest potential for earnings surprises that could drive stock price gains.

Keel Infrastructure (KEEL) shares have risen 27.7% over the past year, outperforming its industry, driven by progress in its high-performance computing (HPC) data center strategy. The company has advanced permits and fiber contracts at Moses Lake and Sharon sites, maintains $819 million in liquidity, and has exited Bitcoin mining to focus on HPC projects. Estimate revisions have been raised significantly for 2026-2027.

Docusign (DOCU) has outperformed its industry with a 40.2% six-month gain, driven by strong Q2 fiscal 2027 revenues of $875.7M (up 9% YoY) and growing adoption of its Intelligent Agreement Management platform. The company is expanding AI integrations with ChatGPT, Slack, and Google Gemini, while positioning its Model Context Protocol Server for enterprise AI agents. However, elevated operating expenses remain a concern, with Q2 operating costs rising 1.8% YoY despite cost control efforts.

Zacks highlights five low-beta, high-yielding stocks with Strong Buy ratings as defensive plays for September, historically the worst-performing month for U.S. equities. The selections are driven by recent market volatility from geopolitical tensions, sticky inflation concerns, and rising bond yields. Each company demonstrates strong fundamentals and earnings growth potential.

A $1,000 investment in Paycom Software (PAYC) made in September 2016 would be worth $4,633.89 as of September 2, 2026, representing a 363.39% gain. This significantly outperformed the S&P 500's 251.54% return over the same period. Paycom's cloud-based HCM platform continues to benefit from automation adoption and product expansion, with analysts forecasting further upside despite competitive pressures and client employment sensitivity risks.

XSHQ is a smart beta ETF that tracks the S&P SmallCap 600 Quality Index, selecting 120 securities based on quality metrics. With $303.83 million in assets and a 0.29% expense ratio, it has gained 12.72% year-to-date. The fund is heavily weighted toward Financials (27.6%) and offers diversified exposure with 122 holdings, though investors may consider cheaper alternatives like VB or IJR.

Five stocks passed screening criteria for S&P 500 outperformance, positive estimate revisions, and solid fundamentals. Valero Energy leads with 132.6% one-year gains, followed by RCM Technologies (54.7%), Invesco (51.4%), and Remitly Global (41.3%). All five stocks showed significant 2026 earnings estimate increases over 60 days, with Valero Energy's 37.1% increase leading the group.

S&P Dow Jones Indices announced a significant S&P 500 rebalance effective March 23, 2026, adding Vertiv Holdings and Lumentum Holdings while removing Match Group and Paycom. The rebalance reflects a broader market shift toward technology infrastructure and photonics companies supporting AI and cloud computing. Index inclusion typically creates short-term buying pressure for new members and selling pressure for removed stocks, though long-term performance depends on fundamentals.

Reinhart Partners acquired approximately $95.28 million worth of Paycom shares (537,726 shares) in Q4 2025, increasing its stake to 2.9% of fund assets. However, the article notes significant headwinds for Paycom, including a 70% stock decline since 2021, slowing revenue growth from 30% to under 10%, and concerns about AI disruption to its SaaS payroll and HR software business model.

Sather Financial Group increased its stake in Paycom Software by 18,035 shares (worth ~$3.2 million) in Q4 2025, bringing its total position to 268,030 shares valued at $42.71 million. Despite the additional investment, the position's value declined by $9.32 million due to share price depreciation. Paycom trades near five-year lows with significantly decelerated growth (10% in first nine months of 2025 vs. 25%+ historically), but now offers a more attractive valuation at a P/E ratio of 19 compared to pandemic-era multiples exceeding 150.