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Is Automatic Data Processing (ADP) Stock Outpacing Its Business Services Peers This Year?

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Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Automatic Data Processing (ADP - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Automatic Data Processing is one of 207 individual stocks in the Business Services sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ADP is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ADP's full-year earnings has moved 12.55% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ADP has moved about 2.10% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -4.19% on a year-to-date basis. As we can see, Automatic Data Processing is performing better than its sector in the calendar year.

Looking more specifically, ADP belongs to the Outsourcing industry, which includes 14 individual stocks and currently sits at #104 in the Zacks Industry Rank. This group has gained an average of 5.94% so far this year, so ADP is slightly underperforming its industry in this area.

ADP will likely be looking to continue its solid performance, so investors interested in Business Services stocks should continue to pay close attention to the company.


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