Stock of the Day

Automatic Data Processing (ADP)

$329.29

+$3.08 (+0.9%)

Market Cap: $133.28B

About Automatic Data Processing

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.

Its offerings include payroll services, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solution to businesses through a co-employment model. This segment offers employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. Automatic Data Processing, Inc. was founded in 1949 and is headquartered in Roseland, New Jersey.

Automatic Data Processing Bull Case

Here are some ways that investors could benefit from investing in Automatic Data Processing, Inc.:

• The current stock price is around $326, reflecting a strong market position and investor confidence in the company's growth potential.
• Automatic Data Processing, Inc. reported a significant increase in quarterly earnings, with earnings per share surpassing estimates, indicating robust financial health and operational efficiency.
• The company has a high return on equity, showcasing its ability to generate profits from shareholders' equity, which is attractive for investors seeking strong performance.
• With a market capitalization of approximately $132.40 billion, Automatic Data Processing, Inc. is a major player in the business services sector, providing stability and growth opportunities.
• The firm has a consistent dividend payout, with a yield of about 1.90%, appealing to income-focused investors looking for regular returns on their investments.

Automatic Data Processing Bear Case

Investors should be bearish about investing in Automatic Data Processing, Inc. for these reasons:

• The stock has experienced fluctuations, with a 12-month high of $327.99 and a low of $231.27, indicating potential volatility that may concern risk-averse investors.
• Analysts have mixed ratings on the stock, with a consensus rating of "Hold," suggesting that there may be limited upside potential in the near term.
• The company's price-to-earnings ratio is relatively high at 34.01, which may indicate that the stock is overvalued compared to its earnings, raising concerns for value investors.
• Despite recent growth, the competitive landscape in the business services sector is intense, which could impact future profitability and market share.
• The payout ratio is at 63.05%, which, while sustainable, may limit the company's ability to reinvest in growth opportunities or increase dividends in the future.

Recent News

• $1000 Invested In Automatic Data Processing 5 Years Ago Would Be Worth This Much Today (benzinga.com)
• Markets stall after ADP releases dismal jobs report; dollar continues slide with another 0.4% drop (msn.com)
• Stocks Slightly Lower After Weak ADP Jobs Report; Trump Calls for Lower Interest Rates (barrons.com)
• Trump calls on 'Too Late' Powell to lower interest rates after dismal ADP jobs report (msn.com)
• Private vs. govt. jobs: Where the ADP and BLS data diverge (finance.yahoo.com)
• Stock Market Live June 4: S&P 500 (VOO) Flat After Weak Jobs Report (247wallst.com)
• Automatic Data Processing: Promising Growth Potential But Expensive (seekingalpha.com)