Analyst Ratings for Automatic Data Processing Inc. (ADP)

Updated: 2017-07-28

Shares of Automatic Data Processing Inc. (NASDAQ:ADP) have received a consensus rating of Hold from Wall Street analysts. ADP had previously received a consensus rating of Hold a month ago.

21 analysts issued ratings on the stock, where 3 gave ADP a buy rating, 1 gave an overweight rating, 14 issued a hold rating, 1 gave an underweight rating, and 2 issued a sell rating. Today, there are 1 more analysts optimistic about the company future as compared with 90 days ago. During this time, the number of analysts bearish on the stock has increased by 1.

Several price targets were given for ADP by the analysts covering the stock. The most optimistic price target was 115, which equates to a potential upside of -0.54 percent. The lowest price target was 77, implying a possible loss of -33.41 percent. Many analysts are not unbiased in their coverage of stocks, including price targets and stock ratings, so care must be taken in interpreting numbers released by them.

In the last 30 days, analysts have changed their quarterly earnings estimates upwards by an average of 0 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -5.63 percent. Meanwhile, fiscal year estimates have been revised upwards by 0.14 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 1.37 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 0 analysts made positive revisions to their quarterly estimates over the past month, while 2 analysts revised their estimates downwards. Also over the last month, 2 analysts increased their estimates for the FY earnings, compared to 2 analysts that revised their FY estimates downwards.

ADP has an estimated earnings growth rate of 13.21 percent as forecasted by analysts. People on Wall Street often look at a company's PEG ratio. Investors like to see smaller values for the PEG ratio, because people typically see that as an indicator of higher growth relative to stock price. Wall Street investors typically prefer a PEG ratio to be smaller than 1, even though it may be more relevant to compare the ratio to that of a firm's competitors. The PEG ratio of ADP is 2.28.

In the last 52-weeks, ADP has achieved a high of 120.00 and a low of 85.48. The current market price is above the trailing year's low by 35.27 percent, and 3.64 percent lower than its 52-week high. ADP has a price/earnings ratio of 30.08. Investors typically compare the P/E ratio to a company's peers in the industry. The ADP value stock report compares ADP to some of its peers using value stock charts. The market cap of ADP is $47.42 billion. ADP is estimated to release their earnings results for the quarter on 0000-00-00, days from today.