Core Insights - Analysts forecast that Automatic Data Processing (ADP) will report quarterly earnings of $2.58 per share, reflecting a year-over-year increase of 9.8% [1] - Expected revenues for ADP are projected to be $5.38 billion, indicating a 6.7% increase compared to the same quarter last year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2] - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as trends in these revisions correlate with short-term price performance [3] Revenue Projections - Analysts expect 'Segment revenues- Employer Services' to reach $3.57 billion, a change of +5.3% from the year-ago quarter [5] - 'Revenues- Interest on funds held for clients' are forecasted to be $310.24 million, reflecting a +13.7% change from the previous year [5] - 'Revenues- PEO revenues' are projected to be $1.75 billion, indicating a +5.2% increase from the year-ago quarter [5] - 'Segment revenues- PEO Services' are expected to reach $1.77 billion, a +6.3% change from the prior year [6] - The average prediction for 'Revenues, other than interest on funds held for clients and PEO revenues' is $3.27 billion, showing a +4.9% change from the previous year [6] Employment Metrics - The 'Average paid PEO worksite employees during the period' is projected to be 762, up from 746 reported in the same quarter last year [7] Stock Performance - Over the past month, ADP shares have recorded returns of +0.7%, compared to the Zacks S&P 500 composite's +0.6% change [7] - ADP holds a Zacks Rank 3 (Hold), suggesting it will likely perform in line with the overall market in the upcoming period [7]

Core Viewpoint - Growth investing can be simplified by focusing on dividend stocks, particularly Dividend Kings, which have a long history of increasing payouts and may outperform traditional growth stocks over time [2][6]. Group 1: Dividend Kings - Dividend Kings are companies that have raised their annual per-share dividend payments for at least 50 consecutive years, with only 56 stocks qualifying as of early 2026 [5]. - These companies often represent stable, slow-moving businesses that can provide reliable income and potential for long-term capital appreciation [6]. Group 2: Company Examples - **Automatic Data Processing (ADP)**: - ADP processes payroll for over 1 million corporate customers and is expected to generate $21.8 billion in revenue this fiscal year, a 5.8% increase from the previous year [8]. - The company has a market cap of $103 billion and a dividend yield of 2.48%, with dividends raised for 51 consecutive years [10][12]. - ADP consistently converts 20% to 25% of its revenue into net income, supporting ongoing dividend increases [11]. - **Walmart**: - Walmart has increased its per-share dividend payout for 52 consecutive years and has a market cap of $946 billion [13]. - The current dividend yield is 0.79%, with a stock price increase of 156% over the past three years [15]. - Walmart's extensive reach in the U.S. allows it to maintain significant earnings, funding stock buybacks and sustaining dividends despite low profit margins of 3% to 4% [17]. - **American States Water**: - This utility company has raised its dividend for 70 consecutive years, with an average annual increase of over 8% in the past decade [21]. - The company serves over 1 million people and has a market cap of $2.9 billion, with a forward-looking dividend yield of 2.8% [22][24]. - The growing scarcity of potable water and demand for electricity provide American States Water with strong pricing power [23].

Group 1 - ADP has been recognized as one of the "World's Most Admired Companies" by FORTUNE magazine for 2026, marking its 20th year on the list [1][2] - The recognition is based on performance in areas such as product and service quality, global business effectiveness, and innovation [1] - Maria Black, ADP's CEO, emphasized the company's commitment to keeping people at the center of its operations, leveraging AI to enhance human creativity and connection [1] Group 2 - FORTUNE collaborates with Korn Ferry to evaluate approximately 1,500 companies, including the largest U.S. companies and non-U.S. companies with revenues of $10 billion or more [2] - The evaluation criteria include investment value, quality of management and products, social responsibility, and talent attraction [2] - A company must rank in the top half of its industry survey to be included in the list [2] Group 3 - The complete list of the "World's Most Admired Companies" will be published in the February/March 2026 issue of FORTUNE magazine, available on newsstands starting February 17th [3] - ADP was also recognized in The Wall Street Journal's Management Top 250 recently [3] Group 4 - ADP has over 75 years of experience in shaping the world of work, providing HR and payroll solutions [4] - The company serves more than 1.1 million clients across over 140 countries, offering a range of services from simple tools for small businesses to integrated platforms for global enterprises [4] - ADP focuses on using AI-driven insights to design innovative solutions that help people achieve greater success at work [4]

Core Insights - The NER Pulse indicates that U.S. private employers added an average of 8,000 jobs per week for the four weeks ending December 27, 2025, reflecting a modest slowdown in hiring during the last week of 2025 [1]. Employment Data Summary - The four-week moving average of job additions showed the following weekly changes: - Week ending 12/27/2025: 8,000 jobs - Week ending 12/20/2025: 11,250 jobs - Week ending 12/13/2025: 10,250 jobs - Week ending 12/6/2025: 8,750 jobs - Week ending 11/29/2025: 13,250 jobs - Week ending 11/22/2025: 3,750 jobs - Week ending 11/15/2025: -8,500 jobs - Week ending 11/8/2025: -11,750 jobs - Week ending 11/1/2025: -7,500 jobs - Week ending 10/25/2025: -4,750 jobs - Week ending 10/18/2025: 11,500 jobs - Week ending 10/11/2025: 10,250 jobs [1]. NER Pulse Release Information - The NER Pulse is published every Tuesday at 8:15 a.m. ET, except during the weeks when the monthly National Employment Report is released [2]. - The next NER Pulse is scheduled for release on January 27, 2026 [3]. About ADP Research - ADP Research aims to enhance workplace productivity through data-driven insights, providing valuable information for companies, workers, and policymakers [4]. - ADP has over 75 years of experience in HR and payroll solutions, serving more than 1.1 million clients across 140+ countries [5].

Core Viewpoint - Automatic Data Processing Inc. (NASDAQ:ADP) has shown mixed performance, with a short-term stock increase of 0.77% over the past month but a significant decline of 12.82% over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1]. Group 1: Company Performance - The current share price of Automatic Data Processing Inc. is $260.01, reflecting a slight drop of 0.07% [1]. - The company's P/E ratio stands at 25.69, which is lower than the aggregate P/E ratio of 29.74 for the Professional Services industry [4]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate market performance against historical earnings and industry standards [3]. - A lower P/E ratio may suggest that shareholders expect poorer future performance or that the company is undervalued [3][6]. - Investors are advised to consider the P/E ratio alongside other financial metrics and qualitative factors, as it has limitations and should not be used in isolation [6].

Core Insights - There is a structural shift in corporate leadership with more women taking on top roles, leading to improved performance in innovation, operational agility, and shareholder returns [2] - Women-led organizations are demonstrating disciplined execution and better capital allocation, reinforcing investor confidence in sustainable business models [2] Group 1: Women Entrepreneurs and Business Growth - The number of women-owned firms grew 44% faster than male-owned businesses from 2019 to 2024, indicating a significant impact on the U.S. business landscape [4] - 56% of women entrepreneurs reported higher revenues in 2025 compared to 2024, with 66% expecting growth in 2026 despite macroeconomic uncertainty [4] - Women entrepreneurs are increasingly accessing growth capital, with 20% utilizing debt and 32% equity funding in the past year [4] Group 2: Funding Challenges - Women-led startups receive only about 2% of venture capital funding in the U.S. and Europe, highlighting a significant funding disparity [5] - Biases in the investment community contribute to this disparity, with female entrepreneurs often facing risk-focused questions compared to opportunity-focused questions for male entrepreneurs [5] Group 3: Investment Opportunities in Women-Led Companies - Companies like The Estee Lauder Companies Inc. (EL), Commercial Metals Company (CMC), Arista Networks, Inc. (ANET), and FuelCell Energy, Inc. (FCEL) exemplify strong leadership and strategic vision, making them attractive investment opportunities [7] - Estee Lauder Companies reported net sales of $3.48 billion, up 4% year over year, with adjusted earnings per share rising to 32 cents from 14 cents [12] - Commercial Metals Company reported net earnings of $177.3 million on net sales of about $2.1 billion, marking a significant improvement from a net loss in the prior-year period [14] - Arista Networks reported revenue of approximately $2.308 billion, up about 27.5% year over year, with non-GAAP net income of $962.3 million [17] Group 4: Leadership Contributions - Maria Black's leadership at Automatic Data Processing has driven cloud-based HCM innovation and steady revenue growth [3] - Jody Absher at Commercial Metals Company has strengthened governance and legal strategy, contributing to the company's operational success [13][15] - Jayshree V. Ullal's leadership at Arista has transformed the company into a leader in cloud networking, with a focus on innovation and strategic partnerships [16][19] - Karen A. Farrell at FuelCell Energy is enhancing the company's human capital framework, crucial for scaling operations in the clean energy sector [20][22]

Group 1 - Automatic Data Processing, Inc. (ADP) announced a new stock buyback authorization of $6 billion, replacing the previous $5 billion authorization from 2022 [1] - As of December 31, 2025, ADP had approximately 403 million common shares outstanding [1] Group 2 - ADP has over 75 years of experience in HR and payroll solutions, serving more than 1.1 million clients across 140+ countries [2] - The company focuses on innovation and expertise to address business challenges, offering tools for small businesses to integrated platforms for global enterprises [2] - ADP emphasizes its commitment to people through AI-driven insights and innovative solutions in HR, Talent, Time Management, Benefits, Compliance, and Payroll [2]

Group 1 - The NER Pulse indicates that U.S. private employers added an average of 11,750 jobs per week for the four weeks ending December 20, 2025, showing an increase from the previous week [1] - The job gains have shown a fluctuating trend, with the previous week's average at 11,000 jobs and the week before that at 8,750 jobs [1] - The NER Pulse is based on a four-week moving average and is seasonally adjusted, with a two-week lag for more accurate employment trend estimates [1] Group 2 - The NER Pulse is published every Tuesday at 8:15 a.m. ET, except during the release of the monthly National Employment Report [2] - The next NER Pulse is scheduled for release on January 20, 2026 [2] - The ADP National Employment Report and NER Pulse are produced in collaboration with the Stanford Digital Economy Lab [3]

Group 1 - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - The fund's underperformance is attributed to index concentration, growth of assets in Index Funds, and weakness in the dollar [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] Group 2 - Automatic Data Processing, Inc. (NASDAQ:ADP) stock closed at $266.02 on January 9, 2026, with a one-month return of -0.03% and a 52-week loss of 7.26% [2] - The market capitalization of Automatic Data Processing, Inc. (NASDAQ:ADP) is $107.762 billion [2] - The company has faced challenges due to weakness in the US jobs market, and there are concerns regarding the conservativeness of management's future revenue guidance [3] Group 3 - Automatic Data Processing, Inc. (NASDAQ:ADP) was held by 57 hedge fund portfolios at the end of Q3 2025, a decrease from 61 in the previous quarter [4] - While Automatic Data Processing, Inc. (NASDAQ:ADP) is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - The article emphasizes the importance of understanding different payment schedules for employees, which can vary from weekly to monthly [1] Group 1: Investment Insights - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and focuses on providing actionable insights into high-quality dividend growth and undervalued investment opportunities [1] - The goal is to achieve a robust total return through cash dividends and strong capital gains [1]