ADP stock: buy or sell?
Updated on:
Nov 24th, 2020
2
ADP stock brief
- Automatic Data Processing stock rose 1.87% to close at $175.27 on the stock market on Tuesday.
- Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates through two segments, Employer Services and Professional Employer Organization (PEO).
Should I buy Automatic Data Processing stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ADP stock a buy?
Currently, Automatic Data Processing stock matches one trading strategy:
ATH buy setup
One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't have upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Automatic Data Processing can break to ATH any time soon, as it only needs to rise a 2.10%. The buy point is at $178.95 if you want to trade with this strategy. The stop loss would be ordered at $161.06
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $178.95 | $161.06 | 10.00% |
Should I sell Automatic Data Processing stock?
"To sell or not to sell", if you are holding Automatic Data Processing shares?. Trading strategies give us the ability us to avoid rash decisions based on our personal feelings or the buzz surrounding the market. When selling, as well as buying, detailed setups are very simple to use and are only valid for selling shares you already own, not for shorting Automatic Data Processing stock
A guiding principle is that you should not mantain a trading operation that yields higher than expected losses upon purchase. When to sell your stock always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Automatic Data Processing stock?
Currently, Automatic Data Processing stock doesn't match any of our preferred sell setups, so if you hold Automatic Data Processing shares and your operation is in profit probably is not time to sell now
Automatic Data Processing ratings
In the last month, 5 ratings were published for Automatic Data Processing
| Brokerage firm | Rating |
|---|---|
| Oct 28th, 2020 | |
| Jefferies Financial Group | Neutral |
| Oct 29th, 2020 | |
| BMO Capital Markets | |
| Morgan Stanley | |
| Nov 2nd, 2020 | |
| Barclays | Buy |
| Nov 9th, 2020 | |
| Credit Suisse Group | Buy |
Automatic Data Processing stock analysis
Since last September, Automatic Data Processing has been printing an uptrend that by now marked a gorgeous 37.67%. Rising peaks and troughs can be seen easily on a chart and how price action provided very few entry points on the breakouts. Latest pullback was in late October, when price bounced at $144.59. In late October, Automatic Data Processing broke out above its last top ($152.15) offering a good buy point that resulted in a 15.20% profit
SMAs overview
Supports and resistances
The current resistances are:
The current support levels are:
Bollinger bands
The price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last Wednesday after just crossing to the overbough zone for just one day (weak signal). The RSI value on Tuesday was 68.37. Automatic Data Processing price only changed a 0.50% since RSI lost the overbought zone
Automatic Data Processing stock price history
Automatic Data Processing started trading on Mar 17th, 1980 priced at $0.00 per share1. Since then, ADP stock surged by -, with an average of 0.00% per year. An investment of $1,000USD at that time would be valued $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Automatic Data Processing stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions post their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the release of new fundamental data by the company, and usually. Again, these forecasts are not direct recommendations for individual traders and must not be followed blindly.
The average price target for Automatic Data Processing stock calculated from the table below is $172.40. That is a 1.64% lower than the current price ($175.27).
| Brokerage firm | Price target |
|---|---|
| Oct 28th, 2020 | |
| Jefferies Financial Group | $135.00 → $168.00 |
| Oct 29th, 2020 | |
| BMO Capital Markets | $149.00 → $165.00 |
| Morgan Stanley | $147.00 → $159.00 |
| Nov 2nd, 2020 | |
| Barclays | $145.00 → $180.00 |
| Nov 9th, 2020 | |
| Credit Suisse Group | $185.00 → $190.00 |
Earnings and financials
In late October, Automatic Data Processing ($ADP) had the quarterly investors event and presented the fiscal first-quarter report. ADP posted fiscal first-quarter earnings of $1.41 per share on sales of $3.5 billion. The Wall St estimate was $0.98 per share on revenue of $3.3 billion.
This compares to Earnings of $1.34 per share a year ago, so current EPS is an improvement of 5.22%. Looking at revenues, figures slightly moved compared to $35.0B same quarter a year ago.ADP ($ADP) is presenting financial report next January. Estimated Earnings per Share for this quarter is $1.29, compared to $1.41 that was reported for Q1.
Automatic Data Processing competitors
Automatic Data Processing is part of the Industrials sector and the Staffing & Employment Services industry, where it has 12 industry peers.
The following are some of Automatic Data Processing most relevant competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| Automatic Data Processing ($ADP) | $73.3B | Buy | 2 |
| Paychex ($PAYX) | $32.6B | Neutral | 0 |
| TriNet ($TNET) | $5.0B | Neutral | 0 |
| 51job ($JOBS) | $4.7B | Neutral | 0 |
| Upwork ($UPWK) | $4.3B | | 5 |
| Manpower ($MAN) | $4.3B | Neutral | 0 |
| ASGN ($ASGN) | $4.2B | Buy | 1 |
1 In the last 30 days.
Automatic Data Processing performance
To better understand Automatic Data Processing stock performance you must compare its gains with other related stocks in same sector or industry.. For Automatic Data Processing, the benchmark is made against Paychex, TriNet, 51job, Upwork, Manpower and ASGN.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Automatic Data Processing ($ADP) | 19.90% | 24.70% | 22.10% |
| Paychex ($PAYX) | 10.90% | 22.70% | 30.30% |
| TriNet ($TNET) | 6.00% | 10.80% | 30.80% |
| 51job ($JOBS) | -1.10% | 8.80% | 12.50% |
| Upwork ($UPWK) | 77.60% | 140.10% | 182.90% |
| Manpower ($MAN) | 17.60% | 16.90% | 17.60% |
| ASGN ($ASGN) | 17.80% | 13.40% | 24.20% |
Important note:
The viewpoints expressed in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not have any knowledge of the particular situations of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are expressed for general educational motives onlyADP summary
| Tuesday, November 24th, 2020 | |
|---|---|
| Open | $173.54 |
| Close | $175.27 |
| Day range | $172.25 - $175.58 |
| Previous close | $172.06 |
| Session gain | 1.87% |
| Average true range | $4.92 |
| 50d mov avg | $151.96 |
| 100d mov avg | $145.84 |
| 200d mov avg | $144.87 |
| Earnings date | January 27th, 2021 |