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ADP · NASDAQ · STOCK

Automatic Data Processing (ADP) Stock Analysis

Technology Updated August 23, 2026
$280.79
52W $188.16 – $307.80
62/100
$112.25B
25.6
0.82
AI Committee Verdict
Buy
62/100
Conviction: Contested · 50% agreement · 4 analysts
+10.2%
-2.8%
3.69:1
Contested

Is ADP Bullish or Bearish?

Bullish. Innellis AI committee rates Automatic Data Processing (ADP) Buy with a composite score of 62/100 , based on 4 analysts with 50% agreement. Last updated August 23, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +12.71 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -7.29 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is split. Analysts see this stock differently enough that the current rating reflects genuine uncertainty, not a weak signal.

Bull & Bear Case

Bull Case
  • 5 consecutive earnings beats -- consistent execution — Growth
  • Price structure making higher highs and higher lows — Technical
  • Trend and market structure agree -- coherent bullish picture — Technical
  • News sentiment is positive (+0.33 across 23 articles, 14d) — News
Bear Case
  • Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
  • MACD histogram negative -- bearish momentum — Technical
  • Weekly RSI at 81 -- overbought on the larger timeframe too — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 23, 2026
Overall Committee Score
62/100
Agreement
50%
Analysts
4
Conviction
Contested
Sector Rank
Top 14%
of 287 Technology peers
Growth Analyst neutral
58 / 100 · Moderate confidence
Moderate growth -- present but not remarkable
+ 5 consecutive earnings beats -- consistent execution
− Growth rate is decelerating quarter over quarter -- the trend line matters more than the level
Technical Analyst neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ Price structure making higher highs and higher lows
− MACD histogram negative -- bearish momentum
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
68 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.33 across 23 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 59.7 to 62.3.

Analyst-level changes:
  • Growth Analyst: score 52->58 (+6).
  • Value Analyst abstained (was neutral at 55).

Comparing 2026-08-22 to 2026-08-23 (1 day apart).

Technical Analysis

RSI (14)
67.8
Neutral
MACD Histogram
-0.313
Bearish Momentum
Trend Direction
Uptrend
Weekly: Sideways
Market Structure
Hh Hl
Support
$273.00
Resistance
$309.52
Bollinger %B
0.93
Inside Bands
Price vs Moving Averages
EMA 9
$274.49 Above
EMA 21
$268.21 Above
EMA 50
$254.21 Above
EMA 200
$244.68 Above

Fundamental Analysis

Valuation
25
Growth
58
Profitability
85
Financial Health
41
Cash Flow
70
Valuation
P/E Ratio 25.6×
P/B Ratio 18.60×
PEG Ratio 2.67
Dividend Yield 2.36%
52W High $307.80
52W Low $188.16
Quality & Growth
ROE 7317.8%
ROA 698.4%
Gross Margin 4818.6%
Operating Margin 1858.2%
Revenue Growth YoY
Debt / Equity 0.87
AI Fundamental Assessment
P/E ratio of 25.6 (moderate relative to a 15-40x range); Price-to-book of 18.6x; PEG ratio of 2.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 73.2%; Return on assets of 7.0%; Net margin of 20.1%; Gross margin of 48.2%; Current ratio of 0.17 (tight short-term liquidity); Debt-to-equity of 0.87; Free cash flow per share is positive (12.47); Most recent quarter beat estimates by 0.7%; 5 consecutive earnings beats; EPS growth decelerating (+29.0% -> -21.9% QoQ); Average YoY EPS growth of 16.8%; Analyst estimates flat over recent quarters
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