Automatic Data Processing, Inc. (
ADP) is trading around its 52-week lowest levels, facing a valuation reassessment due to Jefferies' downgrade. Despite structural headwinds, this resilient payroll powerhouse navigates a cautious market. As per a deep-diving analysis, ADP's dividend is strong and possibly undervalued, appealing to long-term dividend growth investors. Shares experienced higher trading after an unusually large options trading, strengthening the investment case.
Recently, ADP underwent a dividend bump to $1.70. Notwithstanding, its consensus rating is still a 'Hold'. In regards to dividend bumps, strong Q2 results and impressive ROE of 65% underpin the valuation.
ADP is continuing its embedded benefits strategy, reshaping the investment case with a comprehensive platform offering. It's possibly reshaping investor confidence, especially on data accuracy, amidst a government shutdown.
The company is trading near paramount support and is considered a buy signal by some analysts. The integration of the RUN platform ICHRA has been acknowledged with caution. As per estimates, ADP's weekly job gains are satisfactory but might face a hurdle with the largest drop in US private payrolls in over two and a half years. Despite this, a potential rebound is being noted.
Automatic Data Processing ADP News Analytics from Thu, 24 Apr 2025 19:57:27 GMT to Sat, 03 Jan 2026 14:41:37 GMT -
Rating 1
- Innovation 3
- Information 6
- Rumor -5
