ADP stock: buy or sell
Updated on:
Mar 2nd, 2021
2
ADP stock brief
- Automatic Data Processing stock went up 2.00% to close at $177.50 on the stock market on Monday.
- The price is currently over the upper Bollinger band, which is usually an indicator of a short-term correction
- 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?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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 scales quickly. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Price is now at 1.10% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $179.46. The stop loss would be placed at $161.51
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $179.46 | $161.51 | 10.00% |
Should I sell Automatic Data Processing stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our personal moods or the noise surrounding the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups are not intended for shorting $ADP stock
A guiding principle is that you must never mantain a trading operation that leads to losses greater than those expected upon the buy. The moment 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?
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 30 days, 2 analyst ratings were published for Automatic Data Processing. General sentiment is bullish, with 2 out of 2 posting optimistic forecasts
| Brokerage firm | Rating |
|---|---|
| Feb 1st, 2021 | |
| Barclays | Buy |
| Feb 10th, 2021 | |
| Mizuho | |
Automatic Data Processing stock analysis
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
When the price moves out of the band (above the upper line or below the lower line) it signals that the price is having a very strong momentum and therefore can reverse the trend to the average. In this case, the price is beyond the upper band, meaning a possible near-term correction (at least) until it is below the band
Relative strength index
When the stays for so long below 70 and above 30, without signaling moments of overvaluation and undervaluation, the indicator turns out to be of little use, and we currently are in one of these situations.
Automatic Data Processing stock price history
Automatic Data Processing went public on Mar 17th, 1980 priced at $0.00 per share1. Since then, ADP stock has risen by -, with an average of 0.00% per year. If you had invested $1,000USD in Automatic Data Processing stock at that time, it would have a value of $inf today.
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 tomorrow. Banks and financial organisations post their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions publish their price target based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial information by the company, and usually. Again, these forecasts are not direct recommendations for individual traders and must not be trusted blindly.
There is just one price target issued for Automatic Data Processing that predicts a price of $197.00.
| Brokerage firm | Price target |
|---|---|
| Feb 1st, 2021 | |
| Barclays | $180.00 → $197.00 |
| Feb 10th, 2021 | |
| Mizuho | Not available |
Earnings and financials
Automatic Data Processing, Inc. ($ADP) released earnings of $1.52 per share last January, strongly improving the Wall St consensus estimate of $1.29 per share. This quarterly report represents an earnings surprise of 17.83%. Forecasted revenue for this quarter was $3.6 billion but Automatic Data Processing slightly beat by 3.53%, posting $3.7 billion.
Same quarter last year, reported EPS was $1.52, so current EPS is 0.00%. Looking at sales, figures slightly changed compared to $36.7B same quarter a year ago.ADP ($ADP) posts earnings report late next April. Forecasted for this quarter is $1.81, compared to $1.52 that was reported for Q2.
Automatic Data Processing performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Automatic Data Processing ($ADP) | 5.80% | 2.20% | 27.50% |
Important:
The thoughts expressed in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not know the particular positions of the reader, his or her own 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 published for education reasons onlyADP summary
| Monday, March 1st, 2021 | |
|---|---|
| Open | $175.77 |
| Close | $177.5 |
| Day range | $174.58 - $178.46 |
| Previous close | $174.02 |
| Session gain | 2.00% |
| Average true range | $4.31 |
| 50d mov avg | $169.44 |
| 100d mov avg | $165.83 |
| 200d mov avg | $153.04 |
| Earnings date | April 28th, 2021 |