Automatic Data Processing, Inc.ADP

Technology
Bullish

ASignal's systematic analysis rates ADP as Bullish. Automatic Data Processing, Inc. has a market cap of $96.70B, a P/E of 22.59, a 20.1% net margin, and 7.0% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 11, 2026

The case on ADP

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Strong free cash flow of $4.75B supports capital allocation and resilience
  • Operating margin of 30.18% indicates pricing power and cost control
  • Return on equity of 71.21% reflects exceptional capital efficiency
  • Forward P/E of 19.83x is below current P/E, suggesting earnings growth expectations
  • MACD histogram is expanding, indicating strengthening upward momentum
  • Price above SMA20 and SMA50 confirms uptrend
VS
Bear case
  • RSI at 71.09 indicates overbought conditions, increasing pullback risk
  • Quick ratio of 0.13x raises near-term liquidity concerns
  • High dividend yield of 282% is atypical and may not be sustainable
  • PEG ratio of 2.26x suggests overvaluation relative to growth rate
  • No Reddit mentions, indicating lack of retail investor sentiment data

Key facts

Sector
Technology
Market cap
$96.70B
P/E ratio
22.59
Gross margin
48.5%
Net margin
20.1%
Rev growth YoY
7.0%
Price (Jul 11, 2026)
$241.92

Peers

Clustered with ADP by analysis-profile similarity.

Subscriber-only

See the full verdict on ADP

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes ADP

Most investors never get a second opinion, let alone several. ASignal runs ADP past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Automatic Data Processing, Inc. (ADP) Stock Analysis - ASignal rates it Bullish