HR management companies are on a roll
Payroll and human capital management solutions companies have been performing well in recent weeks. I like these companies because they benefit from high switching costs, scale-based cost advantages, intangible brand assets, and powerful referral networks, all built up over years and decades of hard work.

The following businesses are in my selection:

All of them posted good earnings results with solid outlooks recently. If you are not yet aware of these businesses, they are definitely worth a look.

Eric Messenger's avatar
I’ll have to look at the others. I’ve loved $PAYX every time I’ve looked at it; just can’t get past the valuation to actually pull the trigger. If I pay that high a multiple (>30 P/E) it has to be A+ growth & profitability. I’ll do a peer comparison tomorrow and be back🤙
Michael Szumielewski's avatar
@wall_street_deebo The valuations are indeed quite rich. In the last months, I could only bring myself to buy $PAYC at $296, the rest was too expensive for me this year.

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