What Analysts Are Saying About Automatic Data Processing Stock

4 analysts have shared their evaluations of Automatic Data Processing ADP during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Automatic Data Processing, revealing an average target of $254.25, a high estimate of $272.00, and a low estimate of $235.00. Surpassing the previous average price target of $236.33, the current average has increased by 7.58%.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Automatic Data Processing by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Automatic Data Processing. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Automatic Data Processing compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Automatic Data Processing's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Automatic Data Processing's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

About Automatic Data Processing

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

Understanding the Numbers: Automatic Data Processing's Finances

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Automatic Data Processing displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 5.68%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Automatic Data Processing's net margin is impressive, surpassing industry averages. With a net margin of 19.77%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Automatic Data Processing's ROE stands out, surpassing industry averages. With an impressive ROE of 22.55%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Automatic Data Processing's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.65%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.77, Automatic Data Processing adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.