Stock of the Day

Automatic Data Processing (ADP)

$255.26

-$1.30 (-0.5%)

Market Cap: $102.56B

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 $222, which is significantly lower than its fifty-two week high of $315.98, potentially offering a buying opportunity for investors looking for value.
• Automatic Data Processing, Inc. reported a strong quarterly earnings performance, with earnings per share (EPS) of $3.37, exceeding analyst expectations, indicating robust financial health.
• The company has a high return on equity of 68.82%, suggesting effective management and a strong ability to generate profits from shareholders' equity.
• With a net margin of 20.12%, Automatic Data Processing, Inc. demonstrates strong profitability, which can be attractive to investors seeking stable returns.
• The company has shown consistent revenue growth, with a year-over-year increase of 7.0%, indicating a positive trend in its business operations.

Automatic Data Processing Bear Case

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

• The stock has a beta of 0.83, indicating lower volatility compared to the market, which may not appeal to investors looking for high-risk, high-reward opportunities.
• Analysts have mixed ratings on the stock, with a significant number issuing hold ratings, suggesting uncertainty about its future performance.
• The company's price-to-earnings ratio of 22.52 may indicate that the stock is overvalued compared to its earnings, which could deter value-focused investors.
• Recent price target adjustments by analysts have shown a downward trend, with some targets being reduced, which may signal caution among market experts.
• The debt-to-equity ratio of 0.63, while manageable, indicates that the company does carry some debt, which could be a concern for risk-averse investors.

Recent News

• Automatic Data Processing: The Margins Are Too High, I'll Pass (seekingalpha.com)
• ADP National Employment Report Preliminary Estimate for June 27, 2026 (prnewswire.com)
• Automatic Data Processing (ADP) Draws Q4 Attention, Is The Upside Already Priced In? (uk.finance.yahoo.com)