Is Automatic Data Processing Stock Underperforming the S&P 500?

Core Insights - Automatic Data Processing, Inc. (ADP) is valued at $103.3 billion and is a leading provider of human-capital management services, offering cloud-based solutions for payroll, HR, and related services [1][2] - ADP has a strong global presence, operating in over 140 countries and serving more than a million clients [2] - Despite its market strength, ADP's stock has seen a significant decline, falling 22.6% from its 52-week high and trailing the S&P 500 Index [3][4] Financial Performance - In Q1, ADP reported a revenue increase of 7.1% year over year to $5.2 billion, exceeding consensus estimates [5] - Adjusted EPS rose 6.9% to $2.49, also topping expectations by 2.1% [5] - However, a notable decline in operating cash flow by 22.1% year over year to $642.3 million negatively impacted investor sentiment [5] Market Position and Analyst Sentiment - ADP is categorized as a large-cap stock, reflecting its size and influence in the software application industry [2] - The stock has a consensus "Hold" rating from 17 analysts, with a mean price target of $294.50, indicating a potential upside of 15.4% [6] - In comparison, competitor Paychex, Inc. (PAYX) has underperformed ADP, with a 20.4% decline year to date [6]