Should You Buy Automatic Data Processing Inc (ADP) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
Buy ADP now for a beginner, long-term investor with $50k–$100k who doesn’t want to wait for a perfect entry. The chart is in a short-term downtrend, but price is sitting right on key support (~254/252) with a washed-out RSI and options positioning skewed bullish (put/call < 1). Fundamentals remain steadily growing (latest quarter +7% revenue, +6% EPS YoY), and there’s a near-term catalyst with earnings (2026-01-28 pre-market).
Technical Analysis
Trend is bearish/weak in the near term: moving averages are stacked bearishly (SMA_200 > SMA_20 > SMA_5) and MACD histogram is negative and expanding (-0.421), signaling downside momentum still present. RSI(6) ~34.97 is near oversold/"washed" levels, suggesting selling pressure may be getting stretched. Key levels: Support S1 ~254.42 (price is essentially on it) then S2 ~252.03; Resistance pivot ~258.30 then R1 ~262.17. Practical read: this is not a breakout setup; it’s a support-area entry for long-term buyers who want in now.
Analyst Ratings and Price Target Trends
Recent trend is mixed: a new bullish initiation (Cantor Fitzgerald Overweight, $306) arrived on 2026-01-26, but it follows notable cautious/bearish calls in late 2025 (Jefferies downgrade to Underperform with a $230 target on 2025-12-15; JPMorgan maintains Underweight and lowered target to $295 on 2025-10-30). Wall Street pros view: strong moat/defensiveness/share gains and durable execution. Cons view: mature/saturated category, tougher competition, and less tailwind from interest rates—making medium-term targets harder to achieve.
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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 290.27 USD with a low forecast of 230 USD and a high forecast of 332 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 290.27 USD with a low forecast of 230 USD and a high forecast of 332 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: 250.690
Current: 250.690
