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ADP (ADP. $218.18) beats fiscal Q3 earnings expectations
Automatic Data Processing, Inc. posted third-quarter fiscal 2022 results that were better than expected by the Zacks Consensus Estimate.
The payroll and HR services company’s adjusted earnings climbed +16.9% from the year-ago quarter to $2.21 a share, surpassing the Zacks Consensus Estimate by 6.8%.
Total revenues of $4.51 billion beat the consensus mark by 1.2% and grew +10% year over year on a reported basis and +11% on an organic constant-currency basis.
Employer Services revenues increased 8% on a reported basis and 9% on an organic constant-currency basis. PEO Services revenues grew 14% year over year to $1.51 billion. Average worksite employees paid by PEO Services were 688,000, up 16% year over year.
Adjusted EBIT rose +12% year over year to $1.2 billion. Adjusted EBIT margin expanded 50 basis points to 26.8%, on the back of higher revenues, which were partially offset by increased expenses related to selling, implementation and service, and higher PEO pass-through expenses.
For fiscal 2022, ADP now expects revenues to experience 9-10% growth compared with prior forecast of 8-9%. Adjusted EPS forecast is 15-17% growth compared with the expected prior growth rate of 12-14%.
The company now expects Employer Services revenues growth at a rate of about 7% compared with the expected prior growth rate of about 6%. It projects PEO Services revenues growth of 14-15% compared with prior expectation of 13% to 15%.
ADP's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for ADP moved out of overbought territory on April 11, 2022. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 instances where the indicator moved out of the overbought zone. In 20 of the 41 cases the stock moved lower in the days that followed. This puts the odds of a move down at 49%.
Current price $208.60 crossed the resistance line at $208.05 and is trading between $225.80 resistance and $208.05 resistance lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -11% Downtrend. During the week of 05/09/22 - 05/16/22, the stock fell -0.57%.
The Momentum Indicator moved below the 0 level on April 18, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In 45 of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 46%.
The Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on April 14, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 16 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 35%.
ADP moved below its 50-day Moving Average on May 05, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for ADP crossed bearishly below the 50-day moving average on May 10, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 35%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 43%.
The Aroon Indicator for ADP entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day Moving Average for ADP moved above the 200-day moving average on April 21, 2022. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +4.36% 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in 218 of 361 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
ADP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.09.
The Tickeron SMR rating for this company is 65 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. ADP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 30 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 24 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (20.790) is normal, around the industry mean (6.235). P/E Ratio (30.769) is within average values for comparable stocks, (57.127). Projected Growth (PEG Ratio) (2.501) is also within normal values, averaging (1.968). Dividend Yield (0.019) settles around the average of (0.027) among similar stocks. P/S Ratio (5.631) is also within normal values, averaging (2.471).
The Tickeron Profit vs. Risk Rating rating for this company is 10 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
Personnel Services comprise companies that provide staffing and human resources management solutions for businesses. Each company might be involved in one or more types of recruitment or employee solutions such as permanent or temporary staffing, career consulting, outsourcing, administrative services and many more. Some personnel services companies cater to large businesses, while some specialize in providing services to small/medium-sized organizations. These specialized services potentially expedite the process of getting the ‘right’ candidates and/or training them to meet the requirements of a business process. Some of the companies also cover other critical areas like internal auditing for a company. Robert Half International Inc., ManpowerGroup Inc. and Insperity, Inc. are examples of companies in the personnel services industry.
The average market capitalization across the Personnel Services Industry is 6.7B. The market cap for tickers in the group ranges from 114K to 87.2B. ADP holds the highest valuation in this group at 87.2B. The lowest valued company is FRSI at 114K.
The average weekly price growth across all stocks in the Personnel Services Industry was 1.3%. For the same Industry, the average monthly price growth was -8.58%, and the average quarterly price growth was -17.63%. PIXY experienced the highest price growth at 98.44%, while TREP experienced the biggest fall at -34.88%.
- 5/12/22 5:38 AM: Automatic Data Processing (ADP, $208.53) was a top loser this week, declining -8.89%. Expect a Downtrend reversal
- 3/3/22 7:26 AM: Automatic Data Processing (ADP, $206.29) was a top weekly gainer, with a +5.09% jump
The average weekly volume growth across all stocks in the Personnel Services Industry was 922.5%. For the same stocks of the Industry, the average monthly volume growth was 1255.5% and the average quarterly volume growth was 1517.75%
- 3/19/22 4:44 AM: The volume for Automatic Data Processing stock increased for one day, resulting in a record-breaking daily growth of 218% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 46%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.03.
23 stocks in the group of tickers confirmed the negative outlook based on the Aroon indicator with average odds of 72%.
The average market capitalization across the group is 7.7B. The market cap for tickers in the group ranges from 1.9M to 87.2B. ADP holds the highest valuation in this group at 87.2B. The lowest valued company is FTRS at 1.9M.
The average weekly price growth across all stocks in the group was 2.18%. For the same group, the average monthly price growth was -9.74%, and the average quarterly price growth was -20.03%. PIXY experienced the highest price growth at 136.56%, while TGDLF experienced the biggest fall at -23.28%.
- 5/14/22 4:23 AM: ShiftPixy (PIXY, $0.51) is a top weekly gainer for penny stocks, rising +98.44%
- 5/14/22 4:23 AM: Caldwell Partners International (CWLPF, $1.75) was a top loser this week, declining -11.17%
- 5/12/22 5:38 AM: Automatic Data Processing (ADP, $208.53) was a top loser this week, declining -8.89%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the group was 8.03%. For the same stocks of the group, the average monthly volume growth was 77% and the average quarterly volume growth was 197.94%
- 5/11/22 7:39 AM: The volume for ShiftPixy stock increased for two consecutive days, resulting in a record-breaking daily growth of 237% of the 65-Day Volume Moving Average
- 5/10/22 5:30 AM: The volume for ShiftPixy stock increased for one day, resulting in a record-breaking daily growth of 277% of the 65-Day Volume Moving Average
- 4/12/22 7:05 AM: The volume for 51job stock increased for a consecutive 5 days, with an average daily gain of 269%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Personnel Services comprise companies that provide staffing and human resources management solutions for businesses. Each company might be involved in one or more types of recruitment or employee solutions such as permanent or temporary staffing, career consulting, outsourcing, administrative services and many more. Some personnel services companies cater to large businesses, while some specialize in providing services to small/medium-sized organizations. These specialized services potentially expedite the process of getting the ‘right’ candidates and/or training them to meet the requirements of a business process. Some of the companies also cover other critical areas like internal auditing for a company. Robert Half International Inc., ManpowerGroup Inc. and Insperity, Inc. are examples of companies in the personnel services industry.
The average market capitalization across the Personnel Services Industry is 6.7B. The market cap for tickers in the group ranges from 114K to 87.2B. ADP holds the highest valuation in this group at 87.2B. The lowest valued company is FRSI at 114K.
The average weekly price growth across all stocks in the Personnel Services Industry was 1.14%. For the same Industry, the average monthly price growth was -8.68%, and the average quarterly price growth was -17.72%. PIXY experienced the highest price growth at 136.56%, while TREP experienced the biggest fall at -27.27%.
- 5/14/22 4:23 AM: ShiftPixy (PIXY, $0.51) is a top weekly gainer for penny stocks, rising +98.44%
- 5/14/22 4:23 AM: Caldwell Partners International (CWLPF, $1.75) was a top loser this week, declining -11.17%
- 5/12/22 5:38 AM: Automatic Data Processing (ADP, $208.53) was a top loser this week, declining -8.89%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the Personnel Services Industry was -0.19%. For the same stocks of the Industry, the average monthly volume growth was 78.55% and the average quarterly volume growth was 86.77%
- 5/11/22 7:39 AM: The volume for ShiftPixy stock increased for two consecutive days, resulting in a record-breaking daily growth of 237% of the 65-Day Volume Moving Average
- 5/10/22 5:30 AM: The volume for ShiftPixy stock increased for one day, resulting in a record-breaking daily growth of 277% of the 65-Day Volume Moving Average
- 4/12/22 7:05 AM: The volume for 51job stock increased for a consecutive 5 days, with an average daily gain of 269%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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