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.

Many analysts weighed in on price targets for ADP. The highest price target was 115, implying potential capital gains of -0.54 percent. The most pessimistic analyst gave a price target of 77, implying potential capital losses of -33.41 percent. It is crucial to not blindly accept any price targets or stock ratings, because many analysts have it in their best interest to give positive coverage of certain stocks.

Analysts have revised their earnings estimates upwards for this quarter, by about 0 percent on average, compared to last month. 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.

Another thing investors often look at is the level of agreement among analysts' revisions. 0 analysts have revised their quarterly estimates upwards in the past 30 days, while 2 analysts made negative revisions. Also over the last month, 2 analysts increased their estimates for the FY earnings, compared to 2 analysts that revised their FY estimates downwards.

Analysts estimate earnings of ADP to grow at a rate of 13.21 percent. People on Wall Street often look at a company's PEG ratio. A lower PEG ratio is favorable, as that can indicate whether the high price level of a stock is warranted by high growth. Many investors consider PEG ratios between 0 and 1 as preferrable, although it is frequently more appropriate to compare PEG ratios to the company's peers. ADP has a PEG ratio of 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 stock has a market capitalization of $47.42 billion. ADP's next earnings release will be on 0000-00-00, which is days away.