Paymentus Holdings Inc-A (NYSE:PAY) Emerges as a Strong CAN SLIM Growth Stock Candidate

Paymentus Holdings Inc-A (NYSE:PAY) has emerged as a possible choice for investors using the CAN SLIM strategy, a growth-focused approach developed by William O’Neil. This method blends fundamental and technical analysis to spot high-growth market leaders, focusing on strong earnings growth, institutional support, and stock performance. Paymentus, a provider of cloud-based bill payment solutions, shows multiple traits that match CAN SLIM’s key ideas, making it an interesting option for investors focused on growth.

How Paymentus Matches the CAN SLIM Criteria

C – Current Quarterly Earnings and Sales Growth

The CAN SLIM strategy looks for companies with rising quarterly earnings and revenue growth. Paymentus meets this with:

• 40% year-over-year EPS growth in the latest quarter.
• 48.9% year-over-year revenue growth, showing high demand for its AI-powered SaaS platform.

These numbers go beyond O’Neil’s recommended minimums (18-20% for EPS, 25% for sales), highlighting Paymentus as a strong growth candidate.

A – Annual Earnings Growth

Consistent profitability is another key part of CAN SLIM. Paymentus shows:

• A 3-year EPS compound annual growth rate (CAGR) of 79.3%, well above the 25% target.
• A Return on Equity (ROE) of 10.14%, meeting the system’s profit requirement.

While ROE matches industry norms, the high earnings growth makes up for it, indicating solid business performance.

N – New Products, Management, or Highs

Paymentus works in fintech, a fast-changing field where new ideas drive growth. The company’s Instant Payment Network (IPN) and growing partnerships make it a key player in digital bill payments. Though the stock isn’t near its 52-week high, its strong growth metrics suggest future potential.

S – Supply and Demand

Key supply and demand factors include:

• No debt, giving the company financial flexibility.
• A reasonable float size, which could support price growth if institutional interest rises.

L – Market Leadership

Paymentus has a relative strength (RS) rating of 76.21, meaning it beats 76% of all stocks—a sign of leadership. While recent performance has been weak, its longer-term gains remain solid, with a 47.5% increase over the past year.

I – Institutional Sponsorship

Institutional ownership is 77.9%, below the 85% level CAN SLIM prefers. This leaves space for more institutional buying, which could push the stock higher.

M – Market Direction

The overall market’s short-term trend is up, though Paymentus’ recent technicals have been slow. Investors should watch if the stock can regain strength alongside the market.

Technical and Fundamental Overview

• Technical Rating (2/10): The stock’s short- and long-term trends are down, but it shows a consolidation pattern that could present a buying chance. (Full TA Report)
• Fundamental Rating (5/10): Paymentus does well in growth and financial health but trades at a high valuation (P/E of 52.4). (Full FA Report)

Conclusion

Paymentus Holdings Inc-A fits several CAN SLIM criteria, especially in earnings growth, revenue growth, and market leadership. While its valuation is high and recent performance has been weak, the company’s strong fundamentals and institutional interest make it worth watching.

For investors looking for more CAN SLIM-aligned stocks, check our pre-configured screener here.

Disclaimer: This analysis is not investment advice. Do your own research or consult a financial advisor before making investment decisions.