Roseland, New Jersey-based Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management (HCM) solutions worldwide. The company has a market capitalization of $91.1 billion and operates through its Employer Services and Professional Employer Organization (PEO) segments, which offer strategic, cloud-based platforms, human resources (HR) outsourcing solutions, and more.
Companies with a market cap of $10 billion or more are typically referred to as "large-cap stocks." ADP fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the software application industry.
ADP stock reached its 52-week high of $329.93 on June 06, 2025, and has slipped 31.4% from that peak. The stock has declined 13.5% over the past three months, notably underperforming the Nasdaq Composite ($NASX), which declined 5.1% during the same time frame.
Over the longer term, the dynamic has stayed the same. The stock declined 25.2% over the past 52 weeks, lagging behind the 23.9% return of the NASX over the same period.
ADP has been trading below its 200-day and 50-day moving averages since last year, exhibiting bearish momentum.
On Jan. 29, ADP shares declined 1.9% following the release of its mixed Q2 2026 earnings report. The company’s revenue increased 6% year over year (YoY) to $5.4 billion, but failed to surpass the Street’s estimates. However, ADP’s adjusted EPS for the quarter amounted to $2.62, which exceeded Wall Street's estimates.
When stacked against its closest peer in the software application industry, Cadence Design Systems, Inc.’s shares (CDNS) have climbed 22.1% over the past 52 weeks, comfortably outperforming ADP.
Wall Street’s view of ADP stock is cautious. Among the 18 analysts covering the stock, the overall consensus stands at a “Hold.” Its mean price target of $278.87 suggests 23.3% upside potential from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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