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.
ADP's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for ADP moved out of oversold territory on February 25, 2026. 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 Moving Average Convergence Divergence (MACD) for ADP just turned positive on February 26, 2026. Looking at past instances where ADP's MACD turned positive, the stock continued to rise in of 49 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 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where ADP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on March 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ADP as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 06, 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.
The Aroon Indicator for ADP entered a downward trend on March 05, 2026. 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 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 (13.699) is normal, around the industry mean (10.598). P/E Ratio (20.881) is within average values for comparable stocks, (73.927). Projected Growth (PEG Ratio) (2.799) is also within normal values, averaging (1.890). Dividend Yield (0.029) settles around the average of (0.033) among similar stocks. P/S Ratio (4.168) is also within normal values, averaging (53.874).
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 96, 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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