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Why Is ADP (ADP) Up 8.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for Automatic Data Processing (ADP - Free Report) . Shares have added about 8.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, ADP has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, ADP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

ADP is part of the Zacks Internet - Software industry. Over the past month, Snap (SNAP - Free Report) , a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended March 2025 more than a month ago.

Snap reported revenues of $1.36 billion in the last reported quarter, representing a year-over-year change of +14.1%. EPS of $0.04 for the same period compares with $0.03 a year ago.

Snap is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of -100%. Over the last 30 days, the Zacks Consensus Estimate has changed -30.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Snap. Also, the stock has a VGM Score of C.


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Automatic Data Processing, Inc. (ADP) - free report >>

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