Why Is Software Megacap ADP's Stock Trading Higher Today?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2024
0mins
Should l Buy ADP?
Source: Benzinga
- Financial Performance: ADP reported Q3 2024 revenues of $5.25 billion, beating analyst expectations, with a 7% increase year-over-year.
- Earnings and Margins: Quarterly adjusted EPS was $2.88, surpassing analyst estimates, while Adjusted EBIT increased by 12% to $1.5 billion with a margin increase of 140 bps to 29.3%.
- Net Earnings: Net earnings rose by 14% Y/Y to $1.2 billion, and adjusted net earnings increased by 13% Y/Y to $1.2 billion.
- Outlook and Financial Position: ADP reiterated its revenue growth outlook for FY24 and held $3.3 billion in cash and equivalents as of March 31, 2024.
- Stock Performance and Investment Opportunities: ADP stock gained 12% in the last 12 months, and investors can access it through ETFs like DIVL and PCGG.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ADP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 203.180
Low
230.00
Averages
276.83
High
332.00
Current: 203.180
Low
230.00
Averages
276.83
High
332.00
About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Small Business Hiring Surges Amid Health Care Job Growth
- Small Business Hiring Surge: According to ADP data, private sector employment grew by 62,000 jobs in March, significantly exceeding the Dow Jones consensus of 39,000, with small businesses adding 85,000 jobs, showcasing their resilience amid inflation-driven demand.
- Health Care Sector Strength: The education and health services sectors added 58,000 jobs, partly due to the resolution of a strike at Kaiser Permanente, indicating that health care is providing a defensive floor for the economy even as trade and transport face challenges.
- Manufacturing and Transportation Weakness: Despite the positive overall employment data, the manufacturing and transportation sectors shed nearly 70,000 jobs combined, highlighting a stark divergence between the strength of the service sector and the softness in industrial sectors, which could impact future economic growth.
- Positive Market Reaction: Wall Street opened higher on hopes of a Middle East resolution, although oil prices retreated to $100 per barrel; investors remain cautious ahead of a presidential address that could dictate the market's direction for the new quarter.
See More
Private Sector Adds 62,000 Jobs in March, Exceeding Expectations
- Job Growth Overview: Private sector employment increased by 62,000 in March, down 4,000 from February's revised total of 66,000 but exceeding the Dow Jones estimate of 39,000, indicating resilience in economic recovery.
- Sector Contribution Analysis: The education and health services sector contributed 58,000 jobs, while construction added 30,000, highlighting the critical role of the health services industry in transforming the labor market.
- Small Business Dominance: Businesses with fewer than 50 employees added 85,000 jobs, while medium-sized firms lost 20,000, indicating a shift towards small businesses leading the recovery, potentially due to inflation impacts and the need for multiple jobs.
- Wage Growth Trends: Wage growth for those remaining in their jobs held steady at 4.5%, while job changers saw a 6.6% increase, up 0.3 percentage points from February, reflecting tightening competition in the labor market.
See More
U.S. Treasury Yields Show Minor Fluctuations Amid Iran Conflict Resolution Prospects
- Treasury Yield Movements: The 10-year Treasury yield rose less than 1 basis point to 4.315%, while the 2-year yield fell by 1 basis point to 3.789%, and the 30-year yield increased by over 1 basis point to 4.906%, indicating cautious optimism in the market regarding future economic conditions.
- Investor Sentiment Improvement: Investor sentiment significantly improved as President Trump announced that U.S. forces would leave Iran in 'two to three weeks,' signaling a potential easing of geopolitical risks that had previously weighed on market performance.
- Strong Stock Market Rebound: In the previous trading session, the S&P 500 rose by 2.9%, the Nasdaq Composite jumped 3.8%, and the Dow Jones Industrial Average surged by over 1,100 points, approximately 2.5%, reflecting increased confidence in economic recovery among investors.
- Employment Data Exceeds Expectations: The ADP report indicated that private sector employment growth reached 62,000 in March, although this was a decrease of 4,000 from February's revised figure, it still surpassed the Dow Jones forecast of 39,000, showcasing the resilience of the economic fundamentals.
See More
U.S. Private Sector Employment Increased by 62,000 in March
- Employment Growth Overview: The ADP National Employment Report indicates that the U.S. private sector added 62,000 jobs in March 2026, with steady overall hiring but notable growth in specific sectors like healthcare, highlighting market segmentation.
- Wage Growth Insights: In March, pay for job-stayers rose by 4.5% year-over-year, while pay gains for job-changers accelerated to 6.6%, indicating that companies are increasing compensation to attract and retain talent in a competitive labor market.
- Industry and Regional Variations: Among the new jobs, the goods-producing sector added 30,000 positions and the service sector added 32,000, with the South region showing the most significant growth at 101,000 jobs, reflecting disparities in regional economic vitality.
- Impact of Establishment Size: Small establishments created 85,000 new jobs in March, while medium and large establishments saw declines of 20,000 and 4,000 jobs respectively, demonstrating the resilience and growth potential of small businesses in the current economic landscape.
See More
US Stocks Performance Review and Outlook
- Employment Data Expectations: ADP is set to release employment data at 8:15 a.m. ET, with a consensus estimate of 39,000 new jobs in the private sector, which will provide a crucial indicator of economic health and could influence investor confidence and market trends.
- Retail Sales Growth: Retail sales figures are expected to be released at 8:30 a.m., with a general forecast of a 0.5% increase, a data point that will directly impact consumer spending and the outlook for economic recovery, potentially guiding a market rebound.
- Corporate Earnings Dynamics: Cal-Maine, Conagra, and Lamb Weston are scheduled to report earnings before the bell, with Cal-Maine's stock flat over the past three months, Conagra down 9%, and Lamb Weston showing no significant change, all of which will affect investor sentiment towards the food sector.
- Market Performance Review: In the first quarter, the Russell 2000 index rose by 0.58%, making it the best performer among major indices, while the S&P 500 and Nasdaq 100 fell by 4.63% and 5.98%, respectively, reflecting market volatility and cautious investor sentiment.
See More
Analysis of DGRO ETF's 52-Week Price Range
- Price Range Analysis: DGRO ETF's 52-week low is $54.09 per share, with a high of $74.28, and a last trade at $69.61, indicating stability and investor confidence in the ETF's performance.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to stay informed about market dynamics and investment opportunities.
See More
Small Business Hiring Surges Amid Health Care Job Growth
- Small Business Hiring Surge: According to ADP data, private sector employment grew by 62,000 jobs in March, significantly exceeding the Dow Jones consensus of 39,000, with small businesses adding 85,000 jobs, showcasing their resilience amid inflation-driven demand.
- Health Care Sector Strength: The education and health services sectors added 58,000 jobs, partly due to the resolution of a strike at Kaiser Permanente, indicating that health care is providing a defensive floor for the economy even as trade and transport face challenges.
- Manufacturing and Transportation Weakness: Despite the positive overall employment data, the manufacturing and transportation sectors shed nearly 70,000 jobs combined, highlighting a stark divergence between the strength of the service sector and the softness in industrial sectors, which could impact future economic growth.
- Positive Market Reaction: Wall Street opened higher on hopes of a Middle East resolution, although oil prices retreated to $100 per barrel; investors remain cautious ahead of a presidential address that could dictate the market's direction for the new quarter.
See More
Private Sector Adds 62,000 Jobs in March, Exceeding Expectations
- Job Growth Overview: Private sector employment increased by 62,000 in March, down 4,000 from February's revised total of 66,000 but exceeding the Dow Jones estimate of 39,000, indicating resilience in economic recovery.
- Sector Contribution Analysis: The education and health services sector contributed 58,000 jobs, while construction added 30,000, highlighting the critical role of the health services industry in transforming the labor market.
- Small Business Dominance: Businesses with fewer than 50 employees added 85,000 jobs, while medium-sized firms lost 20,000, indicating a shift towards small businesses leading the recovery, potentially due to inflation impacts and the need for multiple jobs.
- Wage Growth Trends: Wage growth for those remaining in their jobs held steady at 4.5%, while job changers saw a 6.6% increase, up 0.3 percentage points from February, reflecting tightening competition in the labor market.
See More
U.S. Treasury Yields Show Minor Fluctuations Amid Iran Conflict Resolution Prospects
- Treasury Yield Movements: The 10-year Treasury yield rose less than 1 basis point to 4.315%, while the 2-year yield fell by 1 basis point to 3.789%, and the 30-year yield increased by over 1 basis point to 4.906%, indicating cautious optimism in the market regarding future economic conditions.
- Investor Sentiment Improvement: Investor sentiment significantly improved as President Trump announced that U.S. forces would leave Iran in 'two to three weeks,' signaling a potential easing of geopolitical risks that had previously weighed on market performance.
- Strong Stock Market Rebound: In the previous trading session, the S&P 500 rose by 2.9%, the Nasdaq Composite jumped 3.8%, and the Dow Jones Industrial Average surged by over 1,100 points, approximately 2.5%, reflecting increased confidence in economic recovery among investors.
- Employment Data Exceeds Expectations: The ADP report indicated that private sector employment growth reached 62,000 in March, although this was a decrease of 4,000 from February's revised figure, it still surpassed the Dow Jones forecast of 39,000, showcasing the resilience of the economic fundamentals.
See More
U.S. Private Sector Employment Increased by 62,000 in March
- Employment Growth Overview: The ADP National Employment Report indicates that the U.S. private sector added 62,000 jobs in March 2026, with steady overall hiring but notable growth in specific sectors like healthcare, highlighting market segmentation.
- Wage Growth Insights: In March, pay for job-stayers rose by 4.5% year-over-year, while pay gains for job-changers accelerated to 6.6%, indicating that companies are increasing compensation to attract and retain talent in a competitive labor market.
- Industry and Regional Variations: Among the new jobs, the goods-producing sector added 30,000 positions and the service sector added 32,000, with the South region showing the most significant growth at 101,000 jobs, reflecting disparities in regional economic vitality.
- Impact of Establishment Size: Small establishments created 85,000 new jobs in March, while medium and large establishments saw declines of 20,000 and 4,000 jobs respectively, demonstrating the resilience and growth potential of small businesses in the current economic landscape.
See More
US Stocks Performance Review and Outlook
- Employment Data Expectations: ADP is set to release employment data at 8:15 a.m. ET, with a consensus estimate of 39,000 new jobs in the private sector, which will provide a crucial indicator of economic health and could influence investor confidence and market trends.
- Retail Sales Growth: Retail sales figures are expected to be released at 8:30 a.m., with a general forecast of a 0.5% increase, a data point that will directly impact consumer spending and the outlook for economic recovery, potentially guiding a market rebound.
- Corporate Earnings Dynamics: Cal-Maine, Conagra, and Lamb Weston are scheduled to report earnings before the bell, with Cal-Maine's stock flat over the past three months, Conagra down 9%, and Lamb Weston showing no significant change, all of which will affect investor sentiment towards the food sector.
- Market Performance Review: In the first quarter, the Russell 2000 index rose by 0.58%, making it the best performer among major indices, while the S&P 500 and Nasdaq 100 fell by 4.63% and 5.98%, respectively, reflecting market volatility and cautious investor sentiment.
See More
Analysis of DGRO ETF's 52-Week Price Range
- Price Range Analysis: DGRO ETF's 52-week low is $54.09 per share, with a high of $74.28, and a last trade at $69.61, indicating stability and investor confidence in the ETF's performance.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing significant inflows or outflows, allowing investors to stay informed about market dynamics and investment opportunities.
See More
