Forecast Of The Day: ADP Payroll Processing Clients

-10.50%
Downside
260
Market
233
Trefis
ADP: Automatic Data Processing logo
ADP
Automatic Data Processing

What?

ADP’s (NASDAQ:ADP) Number of Clients Served for its payroll processing business rose from 810,000 in FY’19 to 920,000 in FY’21 (FY ends June). Trefis expects the metric to rise to about 980,000 in FY’23.

Why?

Relevant Articles
  1. Why Is The Market Rewarding ADP Stock?
  2. Is Paycom Stock A Good Pick To Realize Long-Term Gains?
  3. Will ADP Stock Trend Lower?
  4. Will Bears Rule ADP Stock Post Earnings?
  5. Workday Stock Is A Good Pick To Realize Gains
  6. Forecast Of The Day: ADP’s Worksite Employees

A quick recovery following Covid-19 and a strong labor market have helped ADP grow its client base.

So What?

However, we think the projected growth is fully priced into ADP stock. We value ADP at $213 per share, roughly in line with the current market price.

See Our Complete Analysis For ADP

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jul 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 ADP Return 2% -13% 109%
 S&P 500 Return 2% -19% 72%
 Trefis Multi-Strategy Portfolio 3% -20% 213%

[1] Month-to-date and year-to-date as of 7/12/2022
[2] Cumulative total returns since the end of 2016

Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates