Automatic Data Processing Stock Performance and Analyst Ratings
Automatic Data Processing (ADP) has underperformed the broader market over the past year, with its stock down 9.9% compared to a 19.5% rise in the S&P 500 Index ($SPX). The company's shares have also lagged behind the State Street Industrial Select Sector SPDR ETF (XLI), which gained 22.3%. However, ADP reported strong Q4 results on July 29 with better-than-expected adjusted EPS of $2.64 and revenue of $5.47 billion. The company raised its fiscal 2027 guidance to include a projected 9% - 11% growth in adjusted EPS, along with EBIT-margin expansion. Analysts expect ADP's earnings per share to grow by 10.3% year-over-year for the fiscal year ending June 2027. Despite this positive outlook, the consensus rating among analysts remains a 'Hold,' based on four 'Strong Buy' ratings and one 'Strong Sell.' Cantor Fitzgerald recently raised its price target to $295 with an 'Overweight' rating.
Topics: analyst sentiment HR/payroll solutions stock performance