Stock Price & Analysis

Based on the provided data and current market conditions, here's a comprehensive analysis of ADP stock:

Technical Analysis

The stock is showing a bullish trend with strong momentum, having risen from around $230 in late 2023 to current levels around $250. Key technical indicators suggest:

• Price is trading above both 50-day and 200-day moving averages
• RSI at 61.57 indicates moderate bullish momentum without being overbought
• MACD is positive with a bullish crossover signal
• Stochastic K (85.07) and D (86.75) lines suggest strong upward momentum

Fundamental Analysis

The company demonstrates solid financial performance:

• Revenue grew 9.2% YoY to $18.01B in FY2023
• Net income increased 15.7% to $3.41B
• Gross margin expanded to 49.43% from 47.49%
• ROE improved significantly to 101.33% from 66.30%

Recent Business Performance

According to recent analyst coverage:

• Q2 earnings exceeded expectations with profit of $963.2M ($2.35 per share)
• Revenue grew 8% to $5.05B
• Adjusted EBIT rose 11% to $1.3B
• Management reaffirmed FY2025 guidance:
  • Revenue growth: 6-7%
  • Adjusted EBIT margin expansion: 30-50 basis points
  • Adjusted EPS growth: 7-9%

Analyst Consensus

Based on 18 analysts covering the stock:

• Consensus rating: "Hold"
• 3 Strong Buy
• 14 Hold
• 1 Strong Sell
• Mean price target: $309.27
• Highest target: $350 (13.6% upside potential)

Recommendation: HOLD

While ADP shows strong fundamentals and positive momentum, the current price level suggests limited immediate upside potential. The stock appears fairly valued at current levels, trading near analyst consensus targets. Consider waiting for a pullback before establishing new positions.

Based on recent analyst reports and technical analysis, ADP stock is projected to reach $340-350 by end of 2025, driven by strong earnings growth and continued expansion in HCM solutions. The company's consistent revenue growth of 6.23% and impressive net margin of 20.88% support this bullish outlook. Technical indicators and Fibonacci levels suggest near-term resistance at $319.40, with strong support at $304.33.

The S1 support level for ADP Stock is $306.58 ,The R1 resistant level for ADP Stock is $314.45.

As of the end of day on 2025-02-27, the price of ADP Stock was $311.67.

The target price for ADP Stock according to analyst rating is 315.60, with the highest price target at 350.00 and the lowest at 294.00. Analysts have a Moderate Buy rating on ADP Stock overall.

The market cap of ADP is $126.7B.

Based on the provided data and recent market developments, here's a comprehensive analysis of ADP's valuation:

Technical Analysis

The stock is currently showing signs of being overvalued based on both technical and fundamental indicators:

• Currently trading at $310.76, near its 52-week high of $311.67
• RSI (14) at 61.57 indicates slightly overbought conditions
• Trading significantly above both 200-day SMA ($274.24) and 60-day SMA ($299.60)

Fundamental Valuation

Key valuation metrics indicate premium pricing:

• P/E ratio: 26.78x (FY2023) vs historical average of 29.99x (FY2022)
• EV/EBITDA: 18.05x vs 20.57x in previous year
• Price/Sales: 5.07x vs 5.36x in previous year
• Price/Book: 25.81x vs 27.09x in previous year

Recent Performance & Growth

• Revenue growth of 6.23% YoY
• Net margin of 20.88% - significantly above industry average
• ROE of 19.33% demonstrates strong operational efficiency
• However, high debt-to-equity ratio of 1.75x indicates elevated financial leverage

Analyst Perspectives

Recent analyst coverage shows:

• Mixed sentiment with 2 somewhat bullish and 2 neutral ratings
• Average price target of $313.75, with a range of $305-$325
• Price targets suggest limited upside potential from current levels

Conclusion

ADP appears overvalued at current levels due to:

1. Premium valuation multiples compared to historical averages
2. Technical indicators suggesting overbought conditions
3. Limited upside potential based on analyst targets
4. High debt levels despite strong operational metrics

While ADP maintains strong fundamentals and consistent dividend growth, the current valuation leaves little room for multiple expansion or significant price appreciation.

Automatic Data Processing, Inc. (ADP) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration. 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) solutions (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 employment administration outsourcing solutions. ADP serves over one million clients in 140 countries and territories.

Based on the available data and analyst reports, here's a comprehensive price prediction for ADP stock by 2030:

Technical Analysis & Current Position

Key Growth Drivers & Valuation

Price Prediction for 2030: $450-475

The prediction is based on three key factors:

1. Strong market position and consistent dividend growth, with ADP maintaining its status as a Dividend Aristocrat and showing resilient business fundamentals.

2. Recent analyst upgrades, including Barclays raising the price target to $350, indicating strong near-term growth potential.

3. Solid financial metrics with impressive net margins of 20.88% and ROE of 19.33%, suggesting sustainable long-term growth capabilities.

The projected price range represents approximately 45-53% upside from current levels ($310.76), implying a reasonable 6-7% annual growth rate considering ADP's established market position in payroll and human capital management solutions.

ADP has a total of 63000 employees.