​Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the Profitable SaaS Companies for 2026. Wall Street has a mixed opinion on Automatic Data Processing, Inc. (NASDAQ:ADP) since the release of its fiscal Q2 2026 results on January 28. ​Recently, on February 9, David Grossman from Stifel Nicolaus reiterated a Hold rating on the stock and lowered the price target from $280 to $270. Earlier on January 28, BMO Capital also lowered the price target from $288 to $281, while maintaining a Market Perform rati ...

Valued at a market cap of $87.6 billion, Automatic Data Processing, Inc. (ADP) is a Roseland, New Jersey-based company that provides cloud-based human capital management (HCM) solutions. This HCM solutions provider has considerably underperformed the broader market over the past 52 weeks. Shares of ADP have declined 29.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 14.4%. Moreover, on a YTD basis, the stock is down 16%, compared to SPX’s 1.4% return. More News from Barchart ...

Core Viewpoint - The article suggests that several human capital management (HCM) technology stocks are currently in oversold territory and may present buying opportunities following a strong U.S. jobs report in January, where 130,000 jobs were added, exceeding expectations of 68,000-75,000, and the unemployment rate decreased to 4.3% from an expected 4.4% [1]. Group 1: Workday (WDAY) - Workday is identified as the largest global HCM applications vendor, with its stock down nearly 50% from its 52-week high of $281 per share [4][5]. - Despite slower annual revenue growth, a 12% increase is projected for FY26 and FY27, with revenue approaching $10 billion [5]. - Annual earnings are expected to rise by 24% this year and another 16% in FY27 to $10.57 per share, with the stock trading at its lowest forward earnings multiple of 14X since becoming profitable [6]. Group 2: Paylocity (PCTY) - Paylocity, which provides cloud-based payroll and HCM software solutions, has seen its stock price cut in half from a one-year high of $218 per share [9]. - The stock is considered affordable, with single-digit growth appealing at a 15X forward earnings multiple, and it recently reported Q2 EPS of $1.85, exceeding expectations of $1.57 and up 21% from $1.52 a year ago [10]. Group 3: Automatic Data Processing (ADP) - ADP is recognized as a diverse provider of HCM technology solutions, with its stock down more than 30% from its 52-week high of $329 per share [12]. - The stock is trading at a reasonable 20X forward earnings multiple, with projected EPS growth of over 9% for FY26 and FY27 [13]. - ADP is forecasted to have 5% annual revenue growth, with strong financial figures, cash flow, and recurring revenue, and is noted as a Dividend King with a current annual yield of 3.02% [14][15].

Core Insights - Automatic Data Processing is considered undervalued compared to its peers in the Professional Services industry based on PE, PB, and PS ratios, indicating potential investment opportunities [2] - The company demonstrates strong performance in ROE, EBITDA, and gross profit, reflecting efficient operations and profitability [2] - A low revenue growth rate is identified as a potential concern for the company's future prospects within the industry [2] Financial Position - Automatic Data Processing has a lower debt-to-equity ratio of 0.68 compared to its top 4 peers, indicating a stronger financial position and less reliance on debt financing [4] - The favorable balance between debt and equity is viewed positively by investors, suggesting a lower financial risk profile [4]

Core Insights - ADP is a leading provider in the HR and payroll solutions sector, serving over 1.1 million clients globally and focusing on data-driven workplace solutions [1] - The latest ADP National Employment Report shows a positive trend in U.S. private employment, with an average of 6,500 jobs added weekly for the four weeks ending January 24, 2026 [2] - ADP's recent earnings report revealed earnings per share of $2.62 and revenue of approximately $5.36 billion, both exceeding market expectations [3] - Despite positive employment trends and strong financial results, ADP's stock price has seen fluctuations, currently priced at $223.92, down approximately 1.19% [4] - Analyst David Grossman from Stifel Nicolaus has set a price target of $270 for ADP, indicating a potential upside of about 16.7% from the current price [5] Financial Performance - ADP reported earnings per share of $2.62, surpassing the estimated $2.57, and achieved revenue of approximately $5.36 billion, exceeding the estimated $5.34 billion [3][6] - The stock has fluctuated, with a current price of $223.92, reflecting a decrease of about 1.19% [4][6] Employment Trends - The ADP National Employment Report indicates a positive trend in U.S. private employment, with an average of 6,500 jobs added per week [2][6]

adjusted)1/24/20266,5001/17/20265,0001/10/20263,7501/3/20268,25012/27/20254,25012/20/20258,00012/13/20259,50012/6/20252,50011/29/202517,00011/22/202520,0 NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high- frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.The NER Pulse, including 12 weeks of historic ...

从历史上看，私人机构数据在美国经济分析中的角色由来已久。在20世纪30年代现代官方统计体系建立 之前，市场本就依赖企业与机构自行收集的信息来观察经济变化。比如，1951年，世界大型企业联合会 就已创建招聘广告指数衡量劳动力需求，而劳工统计局直到2000年才开始发布职位空缺数据。 随着数字化进程加速，企业能够收集的数据规模远超以往，数据处理技术与计算能力也进一步提升。彼 得森国际经济研究所高级研究员杰德.科尔科(Jed Kolko)指出，这种技术与数据环境的变化，正在不断强 化私人数据在宏观研究中的价值。 最先受到关注的是薪资处理公司ADP公布的月度就业报告。数据显示，上月美国私营部门仅新增2.2万 个就业岗位，表现明显疲弱。与此同时，ADP还对2024年和2025年的就业历史估计进行了大幅下调。 除ADP外，分析人士还密切跟了踪劳动力数据公司Revelio Labs的就业指标、招聘网站Indeed发布的职 位空缺数据，以及薪资服务商Paychex提供的小企业就业指数等多项私人信息来源。 通常情况下，华尔街将这些数据视为对官方数据的前瞻性信号。 不过，近年来，这些替代性数据的重要性正持续上升。去年秋季持续六周的 ...

Core Viewpoint - The latest ADP report indicates a slowdown in the U.S. labor market at the beginning of 2026, with private sector job growth significantly below expectations [1][4]. Employment Data Summary - In January, the private sector added only 22,000 jobs, falling short of the anticipated 48,000 and down from 37,000 in December [1][4]. - The goods-producing sector saw a net increase of only 1,000 jobs, with construction adding 9,000 jobs, while manufacturing lost 8,000 jobs [3]. - The service sector experienced mixed results, with trade/transport/utilities adding 4,000 jobs, financial services increasing by 14,000, education and health services up by 74,000, and leisure and hospitality adding 4,000 jobs [3]. - Conversely, the information sector lost 5,000 jobs, professional/business services decreased by 57,000, and other services fell by 13,000 [3]. - Employment changes by company size showed small businesses (1-49 employees) remained stable, medium-sized businesses (50-499 employees) added 41,000 jobs, while large businesses (500+ employees) lost 18,000 jobs [3]. Economic Insights - ADP's Chief Economist Nela Richardson expressed concern over the low growth in hiring, particularly in manufacturing and professional/business services, which have been experiencing job losses since March 2024 [3]. - Despite some signs of stabilization in recent months, the weaker-than-expected job growth in January suggests continued cooling in the labor market [4]. - Wells Fargo's Senior Economist Sarah House noted that the data reflects a stagnant labor market, with no significant improvement or deterioration in hiring trends [4].

Market Overview - Pre-market futures have shown a recovery from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up by 142 points and the S&P 500 up by 10 points, while the Nasdaq is down by 66 points [1] Employment Data - Private-sector payrolls for January reported by ADP came in at +22K, significantly below expectations, and down from a revised +37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - Services employment accounted for most of the private-sector hires, with +21K in services compared to only +1K in goods-producing sectors; Healthcare Services led with +74K hires, followed by Financial Services with +14K and Construction with +9K, while Professional & Business Services lost -57K jobs [3] - ADP Chief Economist noted that hiring trends are following consumer demand rather than technology advancements, indicating a disconnect between stock market performance and private-sector job growth [4] Sector Insights - The job gains in the Construction sector may hint at increased labor demand due to data-center buildouts, although it is considered premature to draw definitive conclusions [5] - A new ADP methodology revealed a downward adjustment of -212K fewer hires for the private sector in 2025, reducing total expected hires from +771K in 2024 to +398K in 2025, which may provide a clearer picture of the labor market [6] Earnings Reports - Eli Lilly & Co. reported a +7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, driven by strong performance in diabetes and weight loss drugs [8] - AbbVie reported earnings of $2.71 per share, exceeding estimates of $2.66, while Novartis reported $2.03 per share, beating consensus by 4 cents; however, AbbVie shares fell by -3% despite the positive earnings [9] - Phillips 66 reported earnings of $2.47 per share, surpassing expectations of $2.11 and significantly improving from a loss of -$0.15 per share in the same quarter last year, with shares up by +1.3% in pre-market trading [10]

Market Overview - Pre-market futures have improved from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up 142 points and the S&P 500 up 10 points, while the Nasdaq is down 66 points and the Russell 2000 is up 12 points [1] Private Sector Employment - Private-sector payrolls for January reported by ADP show an increase of only 22K, significantly below expectations, and down from a revised 37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - The services sector accounted for most of the job gains, adding 21K jobs, while goods-producing sectors only added 1K jobs. Healthcare Services led with 74K hires, followed by Financial Services with 14K and Construction with 9K. Professional & Business Services lost 57K jobs, and Manufacturing has not seen positive job growth since early 2024 [2][3] - A new ADP methodology indicates a downward revision of 212K fewer hires for the entire year of 2025, reducing total private-sector hires from 771K in 2024 to 398K in 2025 [4] Earnings Reports - Eli Lilly & Co. reported a 7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, also exceeding estimates by 7.9%, driven by strong performance in diabetes and weight loss drugs [6][7] - AbbVie reported earnings of $2.71 per share, beating estimates of $2.66, while Novartis reported $2.03 per share, surpassing consensus by 4 cents. Novartis shares rose 1.6%, while AbbVie shares fell 3% [7] - Phillips 66 reported earnings of $2.47 per share, exceeding expectations of $2.11 and significantly improving from a loss of $0.15 per share in the same quarter last year, with shares up 1.3% in pre-market trading [8]