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 leaves overbought zone
The 10-day RSI Indicator for ADP moved out of overbought territory on June 02, 2026. 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 34 instances where the indicator moved out of the overbought zone. In of the 34 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 88 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 June 11, 2026. 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 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 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.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADP advanced for three days, in of 327 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.
The Aroon Indicator entered an Uptrend today. In of 256 cases where ADP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 (13.514) is normal, around the industry mean (25.763). P/E Ratio (20.019) is within average values for comparable stocks, (73.584). Projected Growth (PEG Ratio) (2.006) is also within normal values, averaging (1.393). Dividend Yield (0.031) settles around the average of (0.051) among similar stocks. P/S Ratio (4.026) is also within normal values, averaging (52.220).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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.
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General Information
a provider of business outsourcing solutions
Industry PackagedSoftware
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