20%+ return in two days — How I picked this stock
Contrary to popular belief, you don’t have to take unnecessary risk to make explosive gains in the stock market.
The stock that I discuss in this post, in particular, soared more than 20% in just two days. This growth would have ballooned a $10,000 investment into $12,000 in just two short days. But, more important than this short-term burst, is understanding why this stock shot up.
The company is Paycom (PAYC).
Paycom offers cloud-based payroll services to corporations.
On July 31, after the market close, they announced Q2 results. The company reported sales that grew 31%, exceeding management’s expectations. Also, sales grew faster than expenses, resulting and 69% earnings growth. These results led to increased profit margins.
The company also opened two new sales offices and management gave guidance that strong fundamental performance will continue in the third quarter.
Now, how was I able to spot this stock before this explosive performance?
The company’s P/E ratio is almost 4x the S&P 500 average. This symbolizes a large demand for this company’s stock.
Secondly, prior to the company reporting Q2 results, earnings were already up 50% in the last year.
Third, Paycom’s 35% return on equity shows that it has a strong competitive advantage and is very profitable.
Finally, prior to the company reporting Q2 results, sales were already up more than 270% since the company went public in 2014.
Do you want to start building your investment portfolio?
No matter what your current financial situation I can help you start making money in the stock market. To prove it, I put together the $5, 5 Minute Investing Plan. This guide will show you step-by-step how you can start investing today with as little as $5 — and it will only take you about 5 minutes to get set up. Click this link to download the $5, 5 Minute Investing Plan now — absolutely free.
As of August 4, 2018, Green Financial Solutions does have a position in the stock mentioned above. this stock is part of one or more of our funds. To learn more about investing with Green Financial Solutions and our funds CLICK HERE.
If this information blessed you, I asked that you please share by clicking one of the buttons below. Together we can be a blessing to someone else.