Two Layers of Support Could Help Automatic Data Processing (ADP)
Automatic Data Processing (Nasdaq: ADP) is a human resource outsourcing firm, offering clients payroll, benefits administration, compliance and other services. The stock has been trending higher over the last few years before pulling back in this recent market downturn. There could be some good news, however, as the stock hit two levels this week that could act as support and help propel it higher.
In August, the stock dipped down to the $128 level before rallying up above the $150 level in early October. The stock dipped down to the $128 area again on Thursday before bouncing back.
The stock also dipped below its 52-week moving average this week, which is the first time it has dipped below the trendline in October 2016. From that point, the stock rallied from the $81.50 area to $115 within the year.
ADP scores very well in its fundamental ratings. The company gets an 89 rating in Investor’s Business Daily’s EPS rating system and it gets an A in the SMR category. The company has seen its earnings grow by 15% per year over the last three years and sales have grown by 7% per year during that same time period. The company boasts a return on equity of 52.2% and a profit margin of 19.7%. As good as those fundamental statistics are, they haven’t helped much during this recent slide in the overall market. If we see a bounce in the overall market, companies with strong fundamentals should see the biggest benefit.
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ADP in +1.36% Uptrend, rising for three consecutive days on August 24, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where ADP advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 19, 2026. You may want to consider a long position or call options on ADP as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 262 cases where ADP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for ADP moved out of overbought territory on August 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for ADP turned negative on August 12, 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 .
ADP broke above its upper Bollinger Band on August 20, 2026. 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.
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 (18.622) is normal, around the industry mean (28.672). P/E Ratio (25.848) is within average values for comparable stocks, (79.190). Projected Growth (PEG Ratio) (2.623) is also within normal values, averaging (1.753). Dividend Yield (0.023) settles around the average of (0.046) among similar stocks. P/S Ratio (5.198) is also within normal values, averaging (70.832).
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 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
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.
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General Information
a provider of business outsourcing solutions
Industry PackagedSoftware
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