Automatic Data Processing, Inc. posted its fiscal first quarter adjusted earnings of $1.86 per share, up +13% year-over-year, and exceeding analysts’ expectations of $1.79 per share (according to figures compiled by Thomson Reuters). Revenues in the quarter ending September grew +10% from the year-ago period to $4.2 billion. Revenue was up +11% in organic constant currency.
Looking ahead, the payroll management company boosted its full year outlook for revenue growth to a range of 8% to 9%; and adjusted EPS growth range of 15% to 17%.
The company announced that the appointment of Maria Black to succeed Carlos Rodriguez as chief executive officer, effective January 1, 2023. Rodriguez will serve as executive chair of the board.
ADP moved above its 50-day moving average on April 23, 2024 date and that indicates a change from a downward trend to an upward trend. In of 38 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 50 cases where ADP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ADP just turned positive on April 23, 2024. Looking at past instances where ADP's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 19, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 109 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for ADP crossed bearishly below the 50-day moving average on April 05, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 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 .
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 of 62 cases within the following month. The odds of a continued downward trend are .
ADP broke above its upper Bollinger Band on March 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ADP entered a downward trend on March 26, 2024. 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 Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron Valuation Rating of (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 (23.753) is normal, around the industry mean (9.924). P/E Ratio (29.073) is within average values for comparable stocks, (46.813). Projected Growth (PEG Ratio) (2.758) is also within normal values, averaging (3.056). Dividend Yield (0.021) settles around the average of (0.036) among similar stocks. ADP's P/S Ratio (5.855) is slightly higher than the industry average of (1.457).
The Tickeron Price Growth Rating for this company is (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 (best 1 - 100 worst), pointing to average 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of business outsourcing solutions
Industry PersonnelServices