Why Is Software Megacap ADP's Stock Trading Higher Today?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2024
0mins
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.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 218.350
Low
230.00
Averages
276.83
High
332.00
Current: 218.350
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.
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- Job Growth Data: For the four weeks ending May 9, 2026, U.S. private employers added an average of 35,750 jobs per week, down from 40,750 the previous week, indicating a slowdown in hiring that could impact the pace of overall economic recovery.
- Data Adjustment and Release: These figures are seasonally adjusted and estimated based on ADP's high-frequency data, with a two-week lag to ensure more accurate estimates of real-time employment trends, reflecting the dynamic changes in the market.
- NER Pulse Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing estimates of week-over-week employment changes based on a four-week moving average, with the next release scheduled for June 9, 2026, ensuring timely access to the latest employment information for market participants.
- ADP Research Mission: ADP Research aims to enhance workplace productivity through data-driven discovery, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally, showcasing its leadership in HR and payroll solutions.
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U.S. Private Sector Job Growth Accelerates
- Job Growth Trend: For the four weeks ending May 2, 2026, U.S. private employers added an average of 42,250 jobs per week, indicating a sustained increase in hiring, particularly notable compared to previous weeks.
- Data Source and Adjustments: These figures come from the NER Pulse, utilizing ADP's high-frequency data and seasonal adjustments to ensure accurate estimates of real-time employment trends, reflecting potential economic recovery momentum.
- Historical Data Comparison: Compared to the previous week's addition of 33,000 jobs, the significant rise in job numbers suggests an accelerating demand for labor, which could positively impact overall economic growth.
- Future Release Schedule: The NER Pulse is published every Tuesday, with the next update scheduled for May 27, 2026, continuously tracking changes in the job market and providing crucial insights for policymakers and businesses.
See More
U.S. Private Sector Job Growth Remains Steady
- Job Growth Data: For the four weeks ending April 25, 2026, U.S. private employers added an average of 33,000 jobs per week, indicating stability in the job market, although these figures are preliminary and subject to revision.
- Four-Week Moving Average: The NER Pulse, based on the ADP National Employment Report, shows an increase in job additions for the week of April 25 compared to the previous week, reflecting ongoing economic recovery momentum.
- Data Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m., providing estimates of week-over-week employment changes based on ADP's high-frequency data, ensuring accurate insights into real-time employment trends that enhance decision-making for policymakers and businesses.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven discoveries, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally, thereby further driving economic growth.
See More
Financial Stocks Advance in Late Wednesday Trading
- Financial Stocks Rally: Financial stocks showed an upward trend in late Wednesday trading, indicating a gradual recovery of market confidence in the financial sector, which could lead to higher stock prices for related companies.
- Improved Market Sentiment: Increased investor interest in financial stocks may stem from optimistic expectations regarding economic recovery, further enhancing overall market activity and promoting capital inflow into the financial sector.
- Rising Trading Volume: As financial stocks advanced, trading volume also increased, reflecting heightened investor attention towards the financial industry, which may lead to intensified price volatility in the short term.
- Optimistic Industry Outlook: The rise in financial stocks may signal increased investor confidence in future economic growth, particularly against the backdrop of improving interest rate policies and economic indicators, potentially attracting more investors to the market.
See More
April Job Growth Exceeds Expectations
- Strong Job Growth: According to ADP, 109,000 jobs were added in April, surpassing the Dow Jones estimate of 84,000, indicating a stable labor market that may reduce the Federal Reserve's incentive to lower interest rates.
- Wage Growth Slows: Wages for employees staying in their jobs rose 4.4% annually, down 0.1 percentage points from the previous month, highlighting uneven wage growth concentrated in key sectors despite overall solid employment conditions.
- Sector Performance Disparities: Education and health services added 61,000 jobs, while trade, transportation, and utilities saw a gain of 25,000; however, professional and business services reported a loss of 8,000, indicating a trend of hiring softness among medium-sized firms.
- Market Focus: Despite the positive April job data, attention will shift to the upcoming nonfarm payroll report, with expectations of 55,000 new jobs and an unemployment rate steady at 4.3%, which could influence the Fed's interest rate decisions.
See More
U.S. Private Sector Employment Rises by 109,000 in April
- Employment Growth Overview: According to the ADP National Employment Report, the U.S. private sector added 109,000 jobs in April, marking the fastest growth since January 2025, driven by strong recoveries in healthcare and trade, transportation, and utilities, indicating a strengthening economic recovery.
- Industry Distribution Analysis: Of the 109,000 new jobs, the service sector accounted for 94,000, while goods-producing industries added 15,000, highlighting the dominance of the service sector in the current economic landscape, which may influence future investment directions.
- Wage Growth Trends: The year-over-year wage growth for job-stayers was 4.4% in April, although it slowed slightly, it remains above inflation levels, indicating ongoing efforts by companies to attract and retain talent, which could positively impact consumer spending.
- Impact of Establishment Size: Small establishments added 65,000 jobs, showcasing their agility in responding to market changes, while large establishments contributed 42,000 jobs, suggesting that various types of businesses are actively hiring in a complex labor market, potentially fostering overall economic recovery.
See More
U.S. Private Sector Job Growth Slows
- Job Growth Data: For the four weeks ending May 9, 2026, U.S. private employers added an average of 35,750 jobs per week, down from 40,750 the previous week, indicating a slowdown in hiring that could impact the pace of overall economic recovery.
- Data Adjustment and Release: These figures are seasonally adjusted and estimated based on ADP's high-frequency data, with a two-week lag to ensure more accurate estimates of real-time employment trends, reflecting the dynamic changes in the market.
- NER Pulse Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m. ET, providing estimates of week-over-week employment changes based on a four-week moving average, with the next release scheduled for June 9, 2026, ensuring timely access to the latest employment information for market participants.
- ADP Research Mission: ADP Research aims to enhance workplace productivity through data-driven discovery, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally, showcasing its leadership in HR and payroll solutions.
See More
U.S. Private Sector Job Growth Accelerates
- Job Growth Trend: For the four weeks ending May 2, 2026, U.S. private employers added an average of 42,250 jobs per week, indicating a sustained increase in hiring, particularly notable compared to previous weeks.
- Data Source and Adjustments: These figures come from the NER Pulse, utilizing ADP's high-frequency data and seasonal adjustments to ensure accurate estimates of real-time employment trends, reflecting potential economic recovery momentum.
- Historical Data Comparison: Compared to the previous week's addition of 33,000 jobs, the significant rise in job numbers suggests an accelerating demand for labor, which could positively impact overall economic growth.
- Future Release Schedule: The NER Pulse is published every Tuesday, with the next update scheduled for May 27, 2026, continuously tracking changes in the job market and providing crucial insights for policymakers and businesses.
See More
U.S. Private Sector Job Growth Remains Steady
- Job Growth Data: For the four weeks ending April 25, 2026, U.S. private employers added an average of 33,000 jobs per week, indicating stability in the job market, although these figures are preliminary and subject to revision.
- Four-Week Moving Average: The NER Pulse, based on the ADP National Employment Report, shows an increase in job additions for the week of April 25 compared to the previous week, reflecting ongoing economic recovery momentum.
- Data Release Frequency: The NER Pulse is published every Tuesday at 8:15 a.m., providing estimates of week-over-week employment changes based on ADP's high-frequency data, ensuring accurate insights into real-time employment trends that enhance decision-making for policymakers and businesses.
- ADP Research Mission: ADP Research aims to enhance work productivity through data-driven discoveries, assisting companies, workers, and policymakers in making informed decisions that impact workplaces globally, thereby further driving economic growth.
See More
Financial Stocks Advance in Late Wednesday Trading
- Financial Stocks Rally: Financial stocks showed an upward trend in late Wednesday trading, indicating a gradual recovery of market confidence in the financial sector, which could lead to higher stock prices for related companies.
- Improved Market Sentiment: Increased investor interest in financial stocks may stem from optimistic expectations regarding economic recovery, further enhancing overall market activity and promoting capital inflow into the financial sector.
- Rising Trading Volume: As financial stocks advanced, trading volume also increased, reflecting heightened investor attention towards the financial industry, which may lead to intensified price volatility in the short term.
- Optimistic Industry Outlook: The rise in financial stocks may signal increased investor confidence in future economic growth, particularly against the backdrop of improving interest rate policies and economic indicators, potentially attracting more investors to the market.
See More
April Job Growth Exceeds Expectations
- Strong Job Growth: According to ADP, 109,000 jobs were added in April, surpassing the Dow Jones estimate of 84,000, indicating a stable labor market that may reduce the Federal Reserve's incentive to lower interest rates.
- Wage Growth Slows: Wages for employees staying in their jobs rose 4.4% annually, down 0.1 percentage points from the previous month, highlighting uneven wage growth concentrated in key sectors despite overall solid employment conditions.
- Sector Performance Disparities: Education and health services added 61,000 jobs, while trade, transportation, and utilities saw a gain of 25,000; however, professional and business services reported a loss of 8,000, indicating a trend of hiring softness among medium-sized firms.
- Market Focus: Despite the positive April job data, attention will shift to the upcoming nonfarm payroll report, with expectations of 55,000 new jobs and an unemployment rate steady at 4.3%, which could influence the Fed's interest rate decisions.
See More
U.S. Private Sector Employment Rises by 109,000 in April
- Employment Growth Overview: According to the ADP National Employment Report, the U.S. private sector added 109,000 jobs in April, marking the fastest growth since January 2025, driven by strong recoveries in healthcare and trade, transportation, and utilities, indicating a strengthening economic recovery.
- Industry Distribution Analysis: Of the 109,000 new jobs, the service sector accounted for 94,000, while goods-producing industries added 15,000, highlighting the dominance of the service sector in the current economic landscape, which may influence future investment directions.
- Wage Growth Trends: The year-over-year wage growth for job-stayers was 4.4% in April, although it slowed slightly, it remains above inflation levels, indicating ongoing efforts by companies to attract and retain talent, which could positively impact consumer spending.
- Impact of Establishment Size: Small establishments added 65,000 jobs, showcasing their agility in responding to market changes, while large establishments contributed 42,000 jobs, suggesting that various types of businesses are actively hiring in a complex labor market, potentially fostering overall economic recovery.
See More
