ADP (ADP, $241.12) beats fiscal Q4 expectations
Automatic Data Processing, Inc. reported fourth-quarter fiscal 2022 results that surpassed the Zacks Consensus Estimate.
The human resources company’s adjusted earnings in the quarter came in at $1.50 per share, exceeding the Zacks Consensus Estimate by 1.4%.
Revenues rose +10.5% from the year-ago quarter to $4.13 billion, beating the consensus estimate by 1.8%.
The company’s employer Services segment’s revenues climbed +8% from the year-ago quarter to $2.7 billion, with pays per control rising +7% year over year.
PEO Services revenues grew +16% year over year to $1.41 billion. Average worksite employees paid by PEO Services grew +14% to 704,000.
Interest on funds held for clients rose +23% to $127 million, and average client funds balances grew 12% to $32.8 billion. Average interest yield on client funds widened 10 basis points to 1.5%.
Looking ahead, ADP expects full-fiscal year 2023 revenues to grow in the 7-9% range (with employer Services revenues growth of 6-8% and PEO Services revenues expansion at 10-12% ranges).The company projects 13-16% growth in adjusted earnings per share. Adjusted effective tax rate is estimated to be around 23%.
ADP's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for ADP moved out of oversold territory on October 17, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
ADP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 94 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 Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on October 10, 2025. 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 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for ADP moved below the 200-day moving average on September 23, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 .
The Aroon Indicator for ADP entered a downward trend on October 23, 2025. 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 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 90, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously 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 (18.416) is normal, around the industry mean (11.358). P/E Ratio (28.211) is within average values for comparable stocks, (128.823). Projected Growth (PEG Ratio) (3.348) is also within normal values, averaging (1.860). Dividend Yield (0.022) settles around the average of (0.028) among similar stocks. P/S Ratio (5.596) is also within normal values, averaging (62.255).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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.
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General Information
a provider of business outsourcing solutions
Industry PackagedSoftware
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