ADP stock: buy or sell
Updated on:
May 17th, 2021
2
ADP stock brief
- Automatic Data Processing closed last Friday at $194.64 after inching a 1.10%.
- From the chart point view, price is drawing a scaled uptrend since last January with higher tops and higher bottoms. This rally marked a 22.80% gain
- 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 2 trading strategies:
Uptrend buy setup
Automatic Data Processing stock continues to trend higher since last January and has marked an amazing 22.80% gain. Price marked a local bottom in this uptrend at $184.85 in late April, and since then it bounced off a 5.30%. Now, it's just 1.36% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $197.28. If you decide to enter this trade, the suggested stop loss is at $179.30
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $197.28 | $179.30 | 9.11% |
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 quickly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Automatic Data Processing can break to all-time highs any time soon, as it only needs to go up a 1.36%. The buy point is at $197.28 if you want to trade with this strategy. Arm your stop-loss at $179.30
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $197.28 | $179.30 | 9.11% |
Should I sell Automatic Data Processing stock?
When you are a novel trader and you own stock shares with some profit, it's really hard to decide the good moment to sell and get your benefits. Like when we have to buy shares, deciding when is appropiate time to sell is not a random decision, and we must follow our own trading style. Our trading system selects very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups are not intended for selling short $ADP stock
As a rule of thumb, you should not hold a trade that leads to losses greater than those expected by the time of purchase. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell Automatic Data Processing stock?
In the current situation of Automatic Data Processing there is not any eligible sell setup, so Automatic Data Processing stock holders with operations in profit can keep their positions
Automatic Data Processing ratings
In the last month, 4 ratings were published for Automatic Data Processing
| Brokerage firm | Rating |
|---|---|
| Apr 29th, 2021 | |
| Morgan Stanley | |
| May 3rd, 2021 | |
| Barclays | Buy |
| Citigroup | Neutral |
| May 5th, 2021 | |
| Morgan Stanley | |
Automatic Data Processing stock analysis
Automatic Data Processing shares started an uptrend last January, and grew a gorgeous 22.80%. During this uptrend, the price gave some entry points on the breakouts. Latest low was in late April, when price bounced at $184.85. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $197.28 and $184.85
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
The price is trading very close to the upper Bollinger band, indicating 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 March after just crossing to the overbough zone for just one day (weak signal). The RSI value last Friday was 55.96. Automatic Data Processing price moved up a 1.11% since RSI lost the overbought zone
Automatic Data Processing stock price history
Automatic Data Processing started trading priced at an adjusted price1 of $0.00 on Mar 1980. Since then, ADP stock surged by -, with an average of 0.00% per year. An investment of thousand dollars on the IPO would be valued $inf nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Automatic Data Processing stock
Nobody knows how much a share will be priced in the future. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price forecasts based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial data by the company, and many times. If you are a small trader you shouldn't invest based on these price targets.
There are 4 price predictions issued for Automatic Data Processing that average $198.50. Automatic Data Processing closed at $194.64 last Friday, so the target price is expecting an increase by 1.98%.
| Brokerage firm | Price target |
|---|---|
| Apr 29th, 2021 | |
| Morgan Stanley | $171.00 → $185.00 |
| May 3rd, 2021 | |
| Barclays | $197.00 → $212.00 |
| Citigroup | $190.00 → $212.00 |
| May 5th, 2021 | |
| Morgan Stanley | $171.00 → $185.00 |
Earnings and financials
Automatic Data Processing ($ADP) hosted the shareholders event and released the report in late April. ADP beat market estimates and reported of $1.89, that is a 3.85% surprise compared to the initial estimates of $1.82. Even so, reported revenues of $4.1 billion were in line with analysts forecasts.
By comparison, the EPS for the same quarter last year was $1.92, so posted EPS means a loss of -1.56%. Turnover barely changed on an annualized basis in the , from $40.5B to $41.0B last quarter.ADP ($ADP) posts Q4 financial report next July. Wall Street analysts forecast of $1.14, that is a 39.68% lower than Q3.
Automatic Data Processing performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Automatic Data Processing ($ADP) | 1.10% | 18.00% | 15.10% |
Important note:
The viewpoints given in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the specific positions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for informational purposes onlyADP summary
| Friday, May 14th, 2021 | |
|---|---|
| Open | $194.35 |
| Close | $194.64 |
| Day range | $192.89 - $195.67 |
| Previous close | $192.52 |
| Session gain | 1.10% |
| Average true range | $4.95 |
| 50d mov avg | $189.36 |
| 100d mov avg | $178.83 |
| 200d mov avg | $164.14 |
| Earnings date | July 28th, 2021 |