Automatic Data Processing, Inc. (NASDAQ:ADP) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now. Stifel Adjusts Automatic Data Processing (ADP) Price Target, Keeps Neutral Stance Photo by Dan Dennis on Unsplash On February 9, Stifel analyst David Grossman lowered his price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $270 from $280. The analyst maintained a Hold rating on the shares. He noted that the stock is currently trading at a 17% premium to the equal-weight S&P 5 ...

Core Insights - Paychex, Inc. reported second-quarter fiscal 2026 results that exceeded Wall Street expectations, leading to an increase in the full-year earnings outlook [1] - The company posted adjusted earnings per share of $1.26, surpassing the analyst consensus of $1.23, with revenue rising 18% year over year to $1.56 billion, slightly above expectations of $1.55 billion [1] Revenue Segments - Management Solutions revenue, the largest segment for Paychex, increased by 21% to $1.2 billion [2] - The company raised its full-year adjusted earnings per share growth forecast to 10%–11%, indicating confidence in operational momentum despite macroeconomic uncertainties [2] Performance Drivers - The performance was bolstered by the April 2025 acquisition of Paycor, which contributed approximately 17% to the growth in Management Solutions revenue [3] - Additional growth drivers included an increase in client counts, higher revenue per client, and a 51% rise in interest income on funds held for clients, totaling $54.3 million [3] - PEO and Insurance Solutions revenue grew by 6% to $336.9 million, driven by an increase in average PEO worksite employees and higher PEO insurance revenues [3]

Core Insights - Three stocks are highlighted with a buy rank and strong income characteristics for investors to consider on December 16 Group 1: Flushing Financial Corporation (FFIC) - Flushing Financial Corporation is a bank holding company for Flushing Bank with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased nearly 6% over the last 60 days [1] - The company has a dividend yield of 5.2%, significantly higher than the industry average of 2.8% [1] Group 2: TIM S.A. (TIMB) - TIM S.A. is a telecommunications company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.6% over the last 60 days [2] - The company offers a dividend yield of 4.4%, compared to the industry average of 2.6% [2] Group 3: TriNet Group, Inc. (TNET) - TriNet Group, Inc. is a human capital management services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 8.7% over the last 60 days [2] - The company has a dividend yield of 1.9%, which is higher than the industry average of 0.0% [3]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9][10] Company Spotlight: Paychex (PAYX) - Paychex, Inc. is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services, primarily serving small- to medium-sized businesses [11] - Currently rated 3 (Hold) with a VGM Score of B, Paychex is also a strong candidate for growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 9.8% for the current fiscal year [12] - Recent upward revisions in earnings estimates by analysts and a Zacks Consensus Estimate increase to $5.47 per share further support Paychex as a potential investment [12]

Core Insights - Three stocks are highlighted with a buy rank and strong income characteristics for investors to consider on November 4 Group 1: TriNet Group, Inc. (TNET) - The Zacks Consensus Estimate for current year earnings has increased by 2.6% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The dividend yield is 1.8%, compared to the industry average of 0.8% [1] Group 2: Huntington Bancshares Incorporated (HBAN) - The Zacks Consensus Estimate for current year earnings has increased by 2.1% over the last 60 days [2] - The company has a Zacks Rank of 1 (Strong Buy) [2] - The dividend yield is 4%, compared to the industry average of nearly 3% [2] Group 3: Isabella Bank Corporation (ISBA) - The Zacks Consensus Estimate for current year earnings has increased by 3.9% over the last 60 days [3] - The company has a Zacks Rank of 1 (Strong Buy) [3] - The dividend yield is 3.1%, compared to the industry average of 2.7% [3]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies optimal entry points based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [11] Company Spotlight: Paychex (PAYX) - Paychex, Inc. is a leading provider of integrated human capital management solutions for small- to medium-sized businesses [12] - Currently rated 3 (Hold) with a VGM Score of B, Paychex shows potential for growth with an 8% year-over-year earnings growth forecast [13] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 1.3% position Paychex as a strong candidate for growth investors [13]

Core Insights - Human capital management (HCM) stocks are gaining investor interest amid fears of a trade war and rising Personal Consumption Expenditures (PCE) data, which have negatively impacted broader market indexes [1] - HCM solution providers, particularly those offering payroll services, are expected to remain resilient against tariff impacts, with consistent demand driven by a stable unemployment rate around 4% [2] Paychex Insights - Paychex CEO John Gibson indicated that there are no recession signs in the company's data, with a fundamentally healthy labor market despite market uncertainties [3] - Paychex's total sales are projected to rise by 4% in fiscal 2025 and by another 5% in fiscal 2026, reaching $5.81 billion, with annual earnings expected to increase by 6% this year and another 6% in fiscal 2026 to $5.30 per share [4] ADP Insights - ADP, a leader in cloud-based HCM solutions, is forecasted to see its top line expand by 6% in fiscal years 2025 and 2026, exceeding $21 billion, with EPS projected to rise by 8% in fiscal 2025 and by 9% in fiscal 2026 to $10.82 [6] Stock Performance - Paychex and ADP shares have increased by 7% and 3% respectively in 2025, providing a defensive hedge for investors as broader indexes have faced declines, with the S&P 500 down 4% year-to-date and the Nasdaq down 10% [9] Cintas Insights - Cintas, while not a payroll service provider, has attracted investor interest due to its growth narrative, with its stock up 11% year-to-date, driven by demand for its specialized business services [10] - Cintas has consistently exceeded earnings expectations and has seen over 300% gains in stock performance over the last five years [11] Conclusion - Monitoring payroll companies like Paychex and ADP is crucial for insights into economic conditions and potential recession risks, while Cintas may also provide valuable economic indicators [14]