Automatic Data Processingの空売り状況は、投資家がAutomatic Data Processingの株価下落に賭けている度合いを知ることができます。空売りデータは2週間ごとに更新されます。

Automatic Data Processing (NASDAQ:ADP) 株価情報, 空売り情報

Automatic Data Processing

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

Automatic Data Processing, Inc. - Common Stock

Automatic Data Processing Inc

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Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) has outperformed the market over the past 15 years by 2.19% on an annualized basis producing an average annual return of 13.66%. Currently, Automatic Data Processing has a market capitalization of $118.02 billion. 
Buying $100 In ADP: If an investor had bought $100 of ADP stock 15 years ago, it would be worth $681.85 today based on a price of $289.65 for ADP at the time of writing.
<h3>Automatic Data Processing's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1735853410_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

News

Trading Ideas

Here's How Much You Would Have Made Owning Automatic Data Processing Stock In The Last 15 Years

Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) has outperformed the market over the past 20 years by 1.59% on an annualized basis producing an average annual return of 10.0%. Currently, Automatic Data Processing has a market capitalization of $122.00 billion. 
Buying $1000 In ADP: If an investor had bought $1000 of ADP stock 20 years ago, it would be worth $6,734.59 today based on a price of $299.42 for ADP at the time of writing.
<h3>Automatic Data Processing's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1734037234_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 20 Years Ago Would Be Worth This Much Today

Automatic Data Processing's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NYSE">ADP</a>) short percent of float has fallen 20.0% since its last report. The company recently reported that it has 5.21 million shares sold short, which is 1.28% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.3 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Automatic Data Processing Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1733510709_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Automatic Data Processing has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Automatic Data Processing's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Automatic Data Processing's peer group average for short interest as a percentage of float is 5.50%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

(ADP) - Analyzing Automatic Data Processing's Short Interest

In the current market session, Automatic Data Processing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) stock price is at $304.09, after a 0.16% drop. However, over the past month, the company's stock went up by 6.49%, and in the past year, by 33.82%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. 

<img src="https://www.benzinga.com/files/images/story/2024/1732296637_0.png" alt="Past Year Chart" />

<h3>A Look at Automatic Data Processing P/E Relative to Its Competitors</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
Compared to the aggregate P/E ratio of the 79.91 in the Professional Services industry, Automatic Data Processing Inc. has a lower P/E ratio of 32.54. Shareholders might be inclined to think that the stock might perform worse than it's industry peers. It's also possible that the stock is undervalued. 

<img src="https://www.benzinga.com/files/images/story/2024/1732296637_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

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Price Over Earnings Overview: Automatic Data Processing

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Shares of professional service companies are trading higher after Donald Trump won the 2024 presidential election.

Dividends

ADP Increases Quarterly Dividend From $1.40 To $1.54 Per Share

Mizuho analyst Dan Dolev maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Outperform and raises the price target from $281 to $310.

Price Target

Analyst Ratings

Mizuho Maintains Outperform on Automatic Data Processing, Raises Price Target to $310

7 analysts have shared their evaluations of Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $298.57, a high estimate of $325.00, and a low estimate of $285.00. Marking an increase of 10.41%, the current average surpasses the previous average price target of $270.43. 
<img src="https://www.benzinga.com/files/images/story/2024/1730725430_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Automatic Data Processing. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Ramsey El-Assal</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$325.00</td>
<td>$310.00</td>
</tr>
<tr>
<td>Bryan Bergin</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Hold</td>
<td>$285.00</td>
<td>$276.00</td>
</tr>
<tr>
<td>Ashish Sabadra</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$315.00</td>
<td>$267.00</td>
</tr>
<tr>
<td>Kevin Mcveigh</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$295.00</td>
<td>$270.00</td>
</tr>
<tr>
<td>Samad Samana</td>
<td>Jefferies</td>
<td>Raises</td>
<td>Hold</td>
<td>$290.00</td>
<td>$260.00</td>
</tr>
<tr>
<td>Peter Christiansen</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$295.00</td>
<td>$260.00</td>
</tr>
<tr>
<td>Tien-Tsin Huang</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$285.00</td>
<td>$250.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Automatic Data Processing. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Automatic Data Processing compared to the broader market.</li>
<li>Price Targets: Understanding forecasts, analysts offer estimates for Automatic Data Processing's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
For valuable insights into Automatic Data Processing's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/ADP/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Automatic Data Processing analyst ratings.</a>
<h2>All You Need to Know About Automatic Data Processing</h2>
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
<h3>Automatic Data Processing: Delving into Financials</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Automatic Data Processing showcased positive performance, achieving a revenue growth rate of 1.95% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Automatic Data Processing's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 20.88%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Automatic Data Processing's ROE excels beyond industry benchmarks, reaching 19.33%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Automatic Data Processing's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.84%, the company showcases efficient use of assets and strong financial health.
Debt Management: Automatic Data Processing's debt-to-equity ratio stands notably higher than the industry average, reaching 1.75. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
<h2>What Are Analyst Ratings?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Expectations For Automatic Data Processing's Future

Barclays analyst Ramsey El-Assal maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Overweight and raises the price target from $310 to $325.

Barclays Maintains Overweight on Automatic Data Processing, Raises Price Target to $325

TD Cowen analyst Bryan Bergin maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Hold and raises the price target from $276 to $285.

TD Cowen Maintains Hold on Automatic Data Processing, Raises Price Target to $285

RBC Capital analyst Ashish Sabadra maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Sector Perform and raises the price target from $267 to $315.

RBC Capital Maintains Sector Perform on Automatic Data Processing, Raises Price Target to $315

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/10/2024-10-30_07h53_04.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Strong ADP Data</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-tech-earnings-nvidia-software-amd-mc-10302024">click here </a>for an enlarged chart of Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of AMD stock is being used to illustrate the point.</li>
<li>The chart shows the momo crowd buying AMD stock yesterday ahead of the earnings release.</li>
<li>The chart shows when earnings were released.</li>
<li>The chart shows the drop in AMD stock after earnings.</li>
<li>The chart shows the proprietary Arora Report VUD indicator changed to orange when earnings were released and continues to be orange today in the premarket.&nbsp; This indicates a net supply of AMD stock.</li>
<li>AMD reported earnings inline with the consensus and provided decent guidance.&nbsp; Why did the stock fall?&nbsp; The reason is that the whisper numbers for AI GPU guidance were approaching $6B.&nbsp; AMD guided above $5B for 2024 – this was inline with consensus.&nbsp; As we have been sharing with you, stocks move based on the difference between reported numbers and whisper numbers.</li>
<li>The reason that AMD was not able to meet the whisper numbers is that even though AMD chips for AI are excellent, AMD does not have the software and the whole system like NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).&nbsp; This limits AMD's market even though AMD is offering cheaper price points compared to Nvidia.&nbsp; AMD has recently bought a systems company in an attempt to catch up to NVDA.&nbsp; However, in The Arora Report analysis, it will take a long time for AMD to catch up with NVDA.&nbsp; Nvidia's CUDA is a parallel computing platform and programming model.&nbsp; Thousands of developers have been using CUDA to harness the power of AI for years.</li>
<li>Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) reported earnings yesterday after the close.&nbsp; Alphabet earnings show data center growth.&nbsp; Data center growth means AI growth.&nbsp; However, in The Arora Report analysis, there is risk in GOOG stock because Google has over 90% of the search market.&nbsp; It is hard to see Google gaining share from here.&nbsp; Even a drop of a few percentage points will substantially hit earnings.</li>
<li>Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) earnings are ahead after the close.&nbsp; In The Arora Report analysis, stocks will move based not only on the earnings but how well the companies are able to monetize AI.</li>
<li>The Arora Report shared early on that AI was real and a fortune was to be made from AI.&nbsp; We have also been sharing with you that it is important to develop deep knowledge because at times it will be treacherous.&nbsp; We have illustrated the treacherousness of following the momo crowd in AI with the example of Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).&nbsp; When everyone was bullish and SMCI was trading above $120, The Arora Report call was that SMCI was worth only $44 &#8211; $48 at best.&nbsp; SMCI is falling about 33% to about $32 as of this writing in the premarket on the news that its independent auditor resigned.</li>
<li>Just released GDP data shows that the economy is strong even though the numbers are less than the consensus.&nbsp; GDP is a lagging indicator.&nbsp; The Arora Report system focuses on leading indicators.&nbsp; Here are the details of the GDP data:
<ul>
<li>Q3 GDP-Adv came at 2.8% vs. 3.0% consensus.</li>
<li>Q3 Chain Deflator-Adv came at 1.8% vs. 2.3% consensus.</li>
</ul>
</li>
<li>Automatic Data Processing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) data indicates a strong jobs picture.&nbsp; ADP is the largest payroll processor in the country and uses its data to give an advanced glimpse of the jobs picture ahead of the official jobs report that will be released on Friday at 8:30am ET.&nbsp; In The Arora Report analysis, if the official jobs report also shows a strong jobs picture, it will decrease the probability that the Fed will cut interest rates at the next meeting.&nbsp;&nbsp;
<ul>
<li>ADP employment change came at 223K vs. 105K consensus.</li>
</ul>
</li>
<li>ADP data is one more data point that has gone against the reason the Fed gave to cut interest rates by 50 bps in September.&nbsp; As we have been writing, almost all of the data has gone against the Fed's reasoning for cutting rates by 50 bps.&nbsp;&nbsp;</li>
<li>In a major setback, Eli Lilly And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) missed the earnings consensus.&nbsp; LLY stock has fallen about 10% as of this writing in the premarket.&nbsp; In sympathy, the stock of Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) is also falling.&nbsp; LLY and NVO stocks have been riding high on weight loss drugs.&nbsp; As full disclosure, LLY stock is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio, long from $318.45.&nbsp; As of this writing, LLY stock is trading at $807.</li>
<li>Jobless claims, personal income and spending, and &nbsp;Fed&#8217;s favorite inflation gauge PCE will all be released tomorrow at 8:30am ET.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), MSFT, GOOG, and META.
In the early trade, money flows are negative in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and NVDA.
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.&nbsp; Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.&nbsp; The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).&nbsp; The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).&nbsp; The most popular ETF for oil is United States Oil ETF (ASCA:USO).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Market Summary

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AMD Earnings Show Power Of Nvidia Software, ADP Data Defies Expectations

Wall Street experienced a mixed trading session on Wednesday as investors weigh a batch of corporate earnings <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41623984/us-economy-grows-less-than-expected-in-q3-yet-private-employment-soars-by-233-000">and fresh economic data.</a>
The U.S. economy grew at an annualized rate of 2.8% in the third quarter, according to advance estimates. This marks a slight deceleration from the previous quarter's 3% pace and falls short of analyst expectations of 3%.
On the employment front, the ADP National Employment report showed private payrolls surged by 233,000 in October —well above the 115,000 forecast and a significant increase from the revised 159,000 in September. This stronger-than-expected job growth underscores the resilience of the labor market ahead of Friday&#8217;s official jobs report.
In corporate news, Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) dropped 10% after posting quarterly results that met expectations but failed to excite investors. The decline in AMD shares dragged down the broader semiconductor sector, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) sliding over 3%.
In contrast, Alphabet Inc. jumped more than 5% following a robust earnings report that beat Wall Street expectations, boosting optimism around mega-cap tech stocks.
At midday, major U.S. indexes were trading mixed. The S&amp;P 500 and the tech-heavy Nasdaq 100 remained flat, while the small-cap Russell 2000 outperformed with a 0.5% gain.
Gold prices extended all-time highs, up 0.5% to $2,787 per ounce. Oil prices surged 2%, fueled by supply concerns.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 0.8% to $72,100, pulling back from recent highs.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,246.40</td>
<td>0.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,309.80</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,838.86</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,505.98</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
</figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent103024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.1% higher to $582.16.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.2% to $423.25.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) eased 0.2% to $499.18.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.5% to $222.76.</li>
<li>The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) outperformed, up by 1.3%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 0.9%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) tumbled 33% after auditors Ernst &amp; Young announced their resignation amid reporting issues, five days ahead of the company&#8217;s earnings report. </li>
</ul>
Large-cap stocks reacting to earnings were:
<ul>
<li>Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), down 8%, </li>
<li>Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), up 3.6%, </li>
<li>AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) up over 5%, </li>
<li>Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), down 1.4%, </li>
<li>Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), down 1%,</li>
<li>Mondelez International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>), up 1%, </li>
<li>Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), down over 7%, </li>
<li>Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>), up 15%,</li>
<li>Reddit Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), up 38%, </li>
<li>Automatic Data Processing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>), up 1%, </li>
<li>Garmin Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRMN#NYSE">GRMN</a>), up 24%. </li>
</ul>
Major companies reporting earnings after the close Wednesday include Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), and Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>).
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41629264/alphabets-earnings-rally-pushes-magnificent-7-market-cap-to-record-16-8-trillion-10-tech-heavy-e">Alphabet&#8217;s Earnings Rally Pushes Magnificent 7 Market Cap To Record $16.8 Trillion: 10 Tech-Heavy ETFs Moving Wednesday</a></li>
</ul>
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GRMN

MDLZ

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Wall Street Mixed, Semiconductors Tumble As AMD Disappoints, Alphabet Rallies, SMCI Plummets: What's Driving Markets Wednesday?

ADP reported Q1 2025 revenues of $4.83B, beating estimates. Adjusted EPS of $2.33 also beat estimates. FY25 outlook projects 6%-7% revenue growth and 7%-9% EPS growth.
Automatic Data Processing,&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>)&nbsp;reported <a target="_blank" href="https://investors.adp.com/events-and-presentations/" rel="noreferrer noopener">fiscal first-quarter 2025</a> revenues of $4.83 billion, beating the analyst consensus estimate of $4.77 billion. Revenues&nbsp;increased&nbsp;7%&nbsp;year-over-year.&nbsp;
The human resources management software company reported quarterly adjusted EPS of $2.33, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $2.21</a>.
Employer Services revenues increased 7% to $3.26 billion.
PEO Services revenues increased 7% to $1.57 billion.
Adjusted EBIT increased 13% to $1.23 billion, and adjusted EBIT margin increased 130 bps to 25.5%.
Net earnings increased 11% Y/Y to $956.3 million, and adjusted net earnings increased 11% Y/Y to $956.1 million.&nbsp;
ADP held $7.35 billion in cash and equivalents as of September 30.
"Our recent acquisition of WorkForce Software, a leading workforce management solutions provider, and the introduction of ADP Lyric HCM, our flexible, intelligent, and human-centric global HCM platform, position us to provide our enterprise clients with a unique global HR, payroll, time, and service solution,&#8221; said CEO Maria Black.
&#8220;Our first quarter revenue and margin performance exceeded our expectations, as we benefited from solid new business bookings growth, strong client revenue retention, and higher client funds interest revenue,&#8221; said CFO Don McGuire.
FY25 Outlook: ADP projected a revenue growth outlook of 6%-7% or $20.36 billion-$20.46 billion (<a href="https://www.benzinga.com/news/earnings/24/07/40070973/adp-surpasses-earnings-expectations-touts-7-increase-in-employer-services-revenue" target="_blank" rel="noreferrer noopener">prior 5%-6%</a>), versus the consensus of $20.24 billion and adjusted diluted EPS growth of 7%-9% or $9.82-$10.01 (prior 8%-10%), versus the <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">consensus of $10.03</a>.
Automatic Data Processing stock gained over 23% year-to-date.
Price Action: ADP stock is up 0.8% to $290.39 at last check Wednesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41623984/us-economy-grows-less-than-expected-in-q3-yet-private-employment-soars-by-233-000">US Economy Grows Less Than Expected In Q3, Yet Private Employment Soars By 233,000 In October</a></li>
</ul>
Photo: Shutterstock

Guidance

ADP Raises The Bar After Q1 Earnings Surprise

Earnings Beats

Automatic Data Processing Q1 2025 Adj. EPS $2.33 Beats $2.21 Estimate, Sales $4.833B Beat $4.774B Estimate

Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) has outperformed the market over the past 15 years by 1.82% on an annualized basis producing an average annual return of 13.9%. Currently, Automatic Data Processing has a market capitalization of $116.25 billion. 
Buying $1000 In ADP: If an investor had bought $1000 of ADP stock 15 years ago, it would be worth $7,067.40 today based on a price of $285.05 for ADP at the time of writing.
<h3>Automatic Data Processing's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730212216_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In Automatic Data Processing 15 Years Ago Would Be Worth Today

Automatic Data Processing's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NYSE">ADP</a>) short percent of float has risen 4.85% since its last report. The company recently reported that it has 7.06 million shares sold short, which is 1.73% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.12 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Automatic Data Processing Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729791913_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Automatic Data Processing has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Automatic Data Processing's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Automatic Data Processing's peer group average for short interest as a percentage of float is 6.63%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Peering Into Automatic Data Processing's Recent Short Interest

UBS analyst Kevin Mcveigh maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Neutral and raises the price target from $270 to $295.

UBS Maintains Neutral on Automatic Data Processing, Raises Price Target to $295

Jefferies analyst Samad Samana maintains Automatic Data Processing (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) with a Hold and raises the price target from $260 to $290.

Jefferies Maintains Hold on Automatic Data Processing, Raises Price Target to $290

The third quarter of 2024 saw strong demand for business services, driven by digital transformation, cost efficiency needs, increased adoption of flexible workforce solutions, and increased focus on compliance and regulatory adherence.
Business services providers that leveraged technology and adapted to market needs for flexibility, regulatory adherence, and sustainability benefited the most. The quarter highlighted the sector&#39;s adaptability in supporting companies through economic uncertainties while capitalizing on long-term growth opportunities in digital, regulatory, and sustainability domains.
Per the latest&nbsp;Earnings Trend&nbsp;report, earnings of S&amp;P 500 members of the business services sector that have reported results this season grew 5.2% year over year on 4.9% revenue growth, with 81.3% of the companies beating EPS estimates and 72.9% topping sales projections.
The sector&#39;s S&amp;P 500 members&#39; total quarterly earnings are currently anticipated to grow 5.4% year over year, and revenues are likely to rise 6.5%.
A handful of companies from the sector, like Fiserv, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fi#NYSE">FI</a>), Booz Allen Hamilton Holding Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bah#NYSE">BAH</a>), S&amp;P Global Inc.&nbsp;and Automatic Data Processing, Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adp#NASDAQ">ADP</a>), are expected to beat estimates in the ongoing reporting cycle.
Let us discuss the factors that are likely to have played a key role in shaping the performance of business services companies in the quarter.
<h2>Steady Growth in Services Sector Amid Strong Demand</h2>
With service activities in the pink, business service demand rose steadily in the quarter. By the end of the third quarter, the Services PMI, measured by the Institute for Supply Management, had stayed above the 50% mark for the 49th time in 52 months.
Sector-specific factors that acted as tailwinds in the quarter are the essentiality of certain services like waste management, the rise in demand for risk mitigation and consulting services, increased expertise in improving operational efficiency and lower costs and digital transformation.
Services about the&nbsp;management of companies &amp; support services, health care &amp; social assistance, finance &amp; insurance, accommodation &amp; food, transportation &amp; Warehousing, Information, utilities, and educational services stayed healthy.
<h2>Stocks Poised to Beat This Season</h2>
With the existence of several players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.
You could narrow down the list of choices by looking at stocks that have the combination of a positive&nbsp;Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold).
Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise in their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.
Here are our picks.
Fiserv: The company is a global provider of payments and financial services technology solutions.FI is scheduled to report its third-quarter 2024 results on Oct. 22. It has an Earnings ESP of +0.18% and currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for the company&#39;s revenues in the to-be-reported quarter is pegged at $4.91 billion, indicating an&nbsp;increase of 6.3% from the year-ago quarter. The consensus mark for earnings is pegged at $2.25 per share, suggesting a rise of 14.8% from the year-ago quarter.
<div class="chart_embed">
<h2>Fiserv, Inc. Price and EPS Surprise</h2>
<img alt="Fiserv, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/6d/1729178294.png" style="height:310px; width:600px" title="" />
Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote
S&amp;P Global: The company is a provider of credit ratings, benchmarks, analytics, and workflow solutions. SPGI is scheduled to report its second-quarter fiscal 2024 results on Oct. 24. It has an Earnings ESP of +3.28% and a Zacks Rank of 2.
</div>
The Zacks Consensus Estimate for the company&#39;s revenues in the to-be-reported quarter is pegged at $3.4 billion, implying year-over-year growth of 10.1%. For earnings, the consensus mark is pegged at $3.54 per share, suggesting a 10.3% rise from the year-ago quarter&#39;s actual.
<div class="chart_embed">
<h2>S&amp;P Global Inc. Price and EPS Surprise</h2>
<img alt="S&amp;P Global Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/b2/1729178477.png" style="height:310px; width:600px" title="" />
S&amp;P Global Inc. price-eps-surprise | S&amp;P Global Inc. Quote
Booz Allen: The company is a provider of management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally.
</div>
BAH is scheduled to post its second-quarter fiscal 2025 results on Oct. 25. It has an Earnings ESP of +0.17% and currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for the company&#39;s revenues in the to-be-reported quarter is pegged at $2.96 billion, indicating an&nbsp;increase of 10.9% from the year-ago quarter. The consensus mark for earnings is pegged at $1.48 per share, suggesting a rise of 14.7% from the year-ago quarter.
<div class="chart_embed">
<h2>Booz Allen Hamilton Holding Corporation Price and EPS Surprise</h2>
<img alt="Booz Allen Hamilton Holding Corporation Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/db/1729178686.png" style="height:310px; width:600px" title="" />
Booz Allen Hamilton Holding Corporation price-eps-surprise | Booz Allen Hamilton Holding Corporation Quote
Automatic Data Processing: The company offers cloud-based human capital management solutions globally. ADP is scheduled to post its first-quarter fiscal 2025 results on Oct. 30. It has an Earnings ESP of +1.67% and currently sports a Zacks Rank of 3.
</div>
The Zacks Consensus Estimate for the company&#39;s revenues in the to-be-reported quarter is pegged at $4.76 billion, indicating a rise of 5.5% from the year-ago quarter. The consensus mark for earnings is pegged at $2.2 per share, suggesting a rise of 5.8% from the year-ago quarter.
<div class="chart_embed">
<h2>Automatic Data Processing, Inc. Price and EPS Surprise</h2>
<img alt="Automatic Data Processing, Inc. Price and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/3b/1729178790.png" style="height:310px; width:600px" title="" />
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
<a href="https://www.zacks.com/stock/news/2352625/4-service-firms-poised-to-beat-estimates-this-earnings-season?cid=CS-BENZ-FT-earnings_esp-2352625">To read this article on Zacks.com click here.</a>
</div>

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Regulations

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4 Service Firms Poised to Beat Estimates This Earnings Season

5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 8% (January 2025)

Integrating technology into payroll systems to streamline processes is expected to strengthen the payroll services industry. Amid this, let's compare payroll services stocks Automatic Data Processing (ADP) and Paychex (PAYX) to analyze which payroll service stock is a better investment. Read on to find out… As companies aim for better insight into payroll expenses, outsourcing services provide efficient solutions for managing costs. Additionally, the growing need to cut payroll-related costs is driving the adoption of outsourcing services, offering organizations cost-effective alternatives.
The payroll outsourcing services market is forecast to grow at a <a href="https://www.technavio.com/report/payroll-outsourcing-services-market-industry-analysis">CAGR of 4.8%</a> by 2028. <a href="https://www.businessresearchinsights.com/market-reports/payroll-market-108707">Digital transformation</a> drives the market by prompting organizations to modernize their payroll processes with advanced technology and automation. This transformation is essential for improving efficiency, accuracy, compliance, and the overall employee experience.
Against this backdrop, let's compare two payroll services stocks to analyze which stock is the better investment: Automatic Data Processing, Inc. (<a href="https://stocknews.com/stock/ADP/">ADP</a>) and Paychex, Inc. (<a href="https://stocknews.com/stock/PAYX/">PAYX</a>).
The Case for Automatic Data Processing, Inc. Stock
With a $118.85 billion market cap, Automatic Data Processing, Inc. (<a href="https://stocknews.com/stock/ADP/">ADP</a>) engages in the provision of cloud-based human capital management (HCM) solutions worldwide.
It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms and human resources (HR) outsourcing solutions. 
ADP's stock has gained 23.1% over the past six months to close the last trading session at $291.69.
ADP's 48.11% trailing-12-month gross profit margin is 52.3% higher than the 31.59% industry average. Also, its 7.77% trailing-12-month <a href="https://www.investopedia.com/terms/r/return_on_total_assets.asp">Return on Total Assets</a> is 46.1% higher than the 5.32% industry average.
ADP's total revenues for the fiscal first quarter that ended September 30, 2024, increased 7.1% year-over-year to $4.83 billion. Its net earnings stood at $956.30 million, up 11.3% from the prior year's quarter. Also, its EPS grew 12.5% year-over-year to $2.34.
For the second quarter ended December 2024, ADP's revenue is expected to increase 6.5% year-over-year to $4.97 million. Its EPS for the ongoing quarter is expected to be $2.30. Moreover, the company surpassed revenue and EPS estimates in all the trailing four quarters, which is impressive.
ADP's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its promising outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Stability and Quality. ADP is ranked #15 out of 38 stocks in the B-rated <a href="https://stocknews.com/category/outsourcing-business-services/">Outsourcing - Business Services</a> industry.
In addition to the POWR Ratings I've just highlighted, you can see ADP's ratings for Momentum, Growth, Value, and Sentiment <a href="https://stocknews.com/stock/ADP/">here</a>.
The Case for Paychex, Inc. Stock
Valued at $50.29 billion by market cap, Paychex, Inc. (<a href="https://stocknews.com/stock/PAYX/">PAYX</a>) provides integrated Human Capital Management (HCM) solutions for payroll, benefits, Human Resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. 
Shares of PAYX have surged 18.9% over the past three months but declined 3.3% over the past month to close the last trading session at $139.67.
In terms of the trailing-12-month CAPEX/Sales, PAYX's 3.07% is 8.5% lower than the 2.83% industry average. However, its 0.48x trailing-12-month asset turnover ratio is 39.4% higher than the 0.78x industry average.
PAYX's revenue increased 5% year-over-year to $1.32 billion for the fiscal 2024 second quarter that ended November 30, 2024. Moreover, the company's operations income came in at $538.10 million, up 6% year-over-year, and adjusted earnings per share grew 6% year-over-year to $1.14.
For the third quarter ending February 2025, PAYX's revenue is expected to increase 4.9% year-over-year to $1.51 billion. Its EPS for the ongoing quarter is expected to grow 7.2% year-over-year to $1.48.
PAYX's fundamentals are reflected in its POWR Ratings. The stock has an overall C rating, translating to Neutral in our proprietary rating system.
PAYX has a C grade for Momentum, Growth, and Sentiment. It is ranked #19 in the same industry.
<a href="https://stocknews.com/stock/PAYX/">Click here</a> for the additional POWR Ratings for PAYX (Value, Stability, and Quality).
ADP vs. Paychex: Which Payroll Services Stock Is the Better Investment?
The continued move toward digitalization and automation in various industries is a key factor driving the payroll services industry. Organizations are increasingly looking for modern payroll solutions that are cloud-based, scalable, and provide self-service features for employees.
Leading payroll services companies ADP and PAYX stand to capitalize on the optimistic industry outlook. However, ADP's strong profitability might make it the better payroll services stock pick.
Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Outsourcing - Business Services industry <a href="https://stocknews.com/category/outsourcing-business-services/">here</a>.
What To Do Next?
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ADP shares were trading at $287.17 per share on Monday afternoon, down $4.52 (-1.55%). Year-to-date, ADP has declined -1.90%, versus a 1.45% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/adp-payx-adp-vs-paychex-which-payroll-services-stock-is-the-better/>ADP vs. Paychex: Which Payroll Services Stock Is the Better Investment?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

ADP vs. Paychex: Which Payroll Services Stock Is the Better Investment?

Dividend growth is a powerful signal of a company's financial health, management's confidence, and commitment to long-term value creation.

10 Best Dividend Stocks Using The Dividend Growth Signal

Fundsmith Equity Fund 2024 Annual Letter To Shareholders

TD Cowen analyst Bryan Bergin raised the firm's price target on ADP (ADP) to $290 from $285 and keeps a Hold rating on the shares as part of a Q4

ADP price target raised to $290 from $285 at TD Cowen

Automatic Data Processing declares $1.54 dividend

Automatic Data Processing Moves Upmarket: Assessing The WorkForce Acquisition

ADBE

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CTRA

DGEAF

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IDXX

INTU

LRCX

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Press Releases

ADP Announces 2025 HCM Distinction Award Finalists

ADP Increases Cash Dividend; Marks 50th Consecutive Year of Dividend Increases

ADP Unveils HR Trends Shaping Work in 2025

Fiserv and ADP Team Up to Empower Small Business Success

ADP to Present at Upcoming Investor Conference

ADP National Employment Report: Private Sector Employment Increased by 146,000 Jobs in November; Annual Pay was Up 4.8%

ADP to Announce Second Quarter Fiscal 2025 Financial Results on January 29, 2025

ADP National Employment Report: Private Sector Employment Increased by 122,000 Jobs in December; Annual Pay was Up 4.6%

ADP Research: Only 24% of Global Workers Are Confident They Have Skills for Career Advancement

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