Stock of the Day

Automatic Data Processing (ADP)

$302.65

-$3.17 (-1.0%)

Market Cap: $122.85B

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 $306, reflecting a stable market position and potential for growth.
• Automatic Data Processing, Inc. reported earnings per share (EPS) of $3.06, exceeding analysts' expectations, indicating strong financial performance.
• The company has shown a revenue increase of 5.7% compared to the same quarter last year, suggesting robust business growth.
• Equities analysts have a consensus rating of "Hold" with an average target price of $307.08, indicating a balanced outlook for the stock.
• Institutional investors own 80.03% of the stock, which often signifies confidence in the company's long-term prospects.

Automatic Data Processing Bear Case

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

• The stock has experienced a slight decline of 0.2% recently, which may indicate short-term volatility.
• One research analyst has rated the stock with a sell rating, suggesting some skepticism about its future performance.
• The price-to-earnings (P/E) ratio is relatively high at 31.33, which could imply that the stock is overvalued compared to its earnings.
• Recent insider selling, with a vice president reducing their stake by 6.10%, may raise concerns about insider confidence in the company's future.
• Analysts have mixed ratings, with nine holding and only three giving a buy rating, indicating uncertainty among market experts.

Recent News

• What to Expect From Automatic Data Processing's Q4 2025 Earnings Report (msn.com)
• ADP’s Robust Financial Health and Valuation Challenges Lead to Hold Rating (tipranks.com)
• Here's How Much You Would Have Made Owning Automatic Data Processing Stock In The Last 10 Years - Automatic Data Processing (NASDAQ:ADP) - Benzinga (benzinga.com)
• Balanced Outlook on Automatic Data Processing with Hold Rating Amid Adjusted Estimates and Valuation (tipranks.com)