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An Outperformer: Shares of Automatic Data Processing have returned 4.1% in the past three months, outperforming 3.2% growth 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.
Positive Earnings Surprise History: ADP has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 2.8%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for ADP’s fiscal 2024 earnings is pegged at $19.2, implying 6.3% growth from the year-ago levels. The company has a long-term expected earnings growth rate of 11.6%.
Growth Factors: ADP focuses on providing the best-in-class HCM technology, unparalleled outsourcing solutions and empowering clients through global scale. Its key focus area is ADP Assist, a cross-platform solution powered by GenAI to deliver insights to improve HR productivity, enhance decision making and streamline routine tasks. The company has expanded call summarization and witnessed improvement in productivity with shorter handle time and improved quality of service. Finally, it has collaborated with Convera, which manages complex global payroll and cross-border payments to enhance client experience.
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Here's Why Automatic Data Processing (ADP) Is a Great Pick Now
Automatic Data Processing (ADP - Free Report) is a cloud-based human capital management solutions provider.
It has performed well over the past three months and has the potential to sustain its momentum in the near term.
Automatic Data Processing, Inc. Revenue (TTM)
Automatic Data Processing, Inc. revenue-ttm | Automatic Data Processing, Inc. Quote
What Makes ADP an Attractive Pick?
An Outperformer: Shares of Automatic Data Processing have returned 4.1% in the past three months, outperforming 3.2% growth 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.
Positive Earnings Surprise History: ADP has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 2.8%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for ADP’s fiscal 2024 earnings is pegged at $19.2, implying 6.3% growth from the year-ago levels. The company has a long-term expected earnings growth rate of 11.6%.
Growth Factors: ADP focuses on providing the best-in-class HCM technology, unparalleled outsourcing solutions and empowering clients through global scale. Its key focus area is ADP Assist, a cross-platform solution powered by GenAI to deliver insights to improve HR productivity, enhance decision making and streamline routine tasks. The company has expanded call summarization and witnessed improvement in productivity with shorter handle time and improved quality of service. Finally, it has collaborated with Convera, which manages complex global payroll and cross-border payments to enhance client experience.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are PagSeguro Digital (PAGS - Free Report) and Veralto Corporation (VLTO - Free Report) .
PagSeguro Digital sports a Zacks Rank #1. The consensus estimate for 2024 earnings has increased 5.8% in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAGS’s earnings are expected to rise 17.4% from the year-ago levels in fiscal 2024. It has a long-term earnings growth expectation of 14.3%.
Veralto carries a Zacks Rank #2 at present. The consensus estimate for the company’s 2024 earnings has increased 2.5% in the past 60 days.
VLTO’s earnings are expected to rise 2.2% from the prior-year actuals in 2024. It has a long-term earnings growth expectation of 5.6%.