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Here's Why You Should Invest in Automatic Data (ADP) Now
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Automatic Data Processing, Inc. (ADP - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio. Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 30.8% in the past year compared with a 28.9% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank: ADP currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Nine estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 1.8% in the past 60 days.
Positive Earnings Surprise History: ADP has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 9.7%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $6.76, which reflects year-over-year growth of 12.3%. Earnings are expected to register 10.3% growth in 2022. The company’s long-term expected earnings per share (EPS) growth rate is pegged at 12%.
Driving Factors: ADP’s three-tier business strategy helps it maintain and expand its position as a human capital management (HCM) technology and services provider. The company is focused on delivering a complete suite of cloud-based HCM and HR Outsourcing solutions. It is expanding its international HCM and HRO businesses with established local, in-country software solutions and cloud-based multi-country solutions.
The company has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. It has strong cash-generating ability that allows it to pursue growth in areas that exhibit true potential.
Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 499.7% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 499.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 75.4% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks Rank #2.
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Here's Why You Should Invest in Automatic Data (ADP) Now
Automatic Data Processing, Inc. (ADP - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 30.8% in the past year compared with a 28.9% rise of the industry it belongs to.
Solid Rank: ADP currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Nine estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 1.8% in the past 60 days.
Positive Earnings Surprise History: ADP has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 9.7%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $6.76, which reflects year-over-year growth of 12.3%. Earnings are expected to register 10.3% growth in 2022. The company’s long-term expected earnings per share (EPS) growth rate is pegged at 12%.
Driving Factors: ADP’s three-tier business strategy helps it maintain and expand its position as a human capital management (HCM) technology and services provider. The company is focused on delivering a complete suite of cloud-based HCM and HR Outsourcing solutions. It is expanding its international HCM and HRO businesses with established local, in-country software solutions and cloud-based multi-country solutions.
The company has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. It has strong cash-generating ability that allows it to pursue growth in areas that exhibit true potential.
Other Stocks to Consider
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 499.7% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 499.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 75.4% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks Rank #2.