Consumer Confidence Rises in December Amid Improved Inflation Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: 59 minutes ago
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Source: Yahoo Finance
Consumer Sentiment Improvement: US consumer sentiment rose slightly to 53.3 in December from 51 in November, although it remains 28% lower than a year ago, indicating ongoing economic concerns despite some optimism about personal finances.
Mixed Economic Indicators: Recent data shows a decline in unemployment claims to a three-year low, but a surprising loss of 32,000 jobs in November and over 71,000 layoffs announced, reflecting a complex labor market situation.
Inflation Expectations: Consumers expect prices to rise at a rate of 4.1% over the next year, the lowest since January, but still express a generally somber outlook due to the burden of high prices.
Upcoming Economic Data: Official government data on payroll growth and inflation is expected to be released on December 16 and 18, respectively, following a sluggish pace of data publication due to a government shutdown.
ADP.O$0.0000%Past 6 months

No Data
Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADP is 293.58 USD with a low forecast of 245.00 USD and a high forecast of 332.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast ADP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADP is 293.58 USD with a low forecast of 245.00 USD and a high forecast of 332.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 259.400

Current: 259.400

Overweight -> Neutral
downgrade
Reason
Overweight -> Neutral
Reason
JPMorgan downgraded Aeroports de Paris to Neutral from Overweight with a price target of EUR 132, up from EUR 128. The firm says the stock's catalysts have played out while the company's capex is likely to increase.
Underweight
downgrade
$340 -> $295
Reason
JPMorgan lowered the firm's price target on ADP to $295 from $340 and keeps an Underweight rating on the shares. The firm kept its estimates largely unchanged post the fiscal Q1 report.
downgrade
$315 -> $245
Reason
Jefferies lowered the firm's price target on ADP to $245 from $315 and keeps a Hold rating on the shares. ADP delivered "solid results" in fiscal Q1, including better-than-consensus 7.1% revenue growth and 6.7% EPS growth, but the firm thinks the stock will struggle to maintain a premium multiple with the path ahead "looking tougher."
Neutral
maintain
$310 -> $303
Reason
Citi lowered the firm's price target on ADP to $303 from $310 and keeps a Neutral rating on the shares following a transfer of coverage. The firm sees the slowing of employment trends and longer sales cycles offsetting the company's favorable demand trends.
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.