ADP Stock Analysis: Buy, Sell, or Hold?

ADP - Automatic Data Processing

SERVICES-COMPUTER PROCESSING & DATA PREPARATION
$280.81
1.60 (0.57%) ▲
5d: +2.88%
30d: +15.62%
90d: +27.6%
HOLD
MODERATE Confidence
Protect Your ADP Gains
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Jul 29, 2026 0d
Smart Money Accumulation

Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →

Signal fired Aug 11, 2026 at $272.33 · last confirmed Aug 17, 2026

Strength: 5.8/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 HOLD: ADP trades at premium valuation expecting 5.4% growth. Hold existing positions but don't chase. Wait for better entry.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$336.68
Based on 7.1% avg growth
INTRINSIC VALUE TODAY
$209.05
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 19.6x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: ADP is currently trading at $280.81, which is considered extended relative to its 30-day fair value range of $252.21 to $275.02. From a valuation perspective, the stock is trading at a premium (Forward PE: 23.0) compared to its historical average (19.6). At these levels, the market is pricing in 5.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.

Technical Outlook: Technically, ADP is in a strong uptrend. The price is approaching resistance at $282.17. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: The stock scores a mixed 42/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $252.21 - $275.02
Company Quality Score 54/100 (HOLD)
Volume Confirmation HIGH
Confidence Score 45.2%

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All Signals

  • BEARISH: Price extended above range
  • NEUTRAL: Mixed technical signals (42/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($286.93)
  • NEUTRAL: Trading at premium valuation - market expects 5.4% growth which is achievable
  • NEUTRAL: Bottoming setup forming (42/100) — watch for confirmation

Trading Range Analysis

30-Day Trading Range $252.21 - $275.02
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $265.82
Resistance Level $282.17
Current Trend Strong Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 23.01
Wall Street Target $286.93 (+2.2%)
Revenue Growth (YoY) 6.8%
Earnings Growth (YoY) 9.8%
Profit Margin 20.1%
Valuation Premium vs History +5.4% premium
PE vs Historical 23.0 vs 19.6 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +5.4% (market-implied from PE analysis)
1-Year Target $295.97 (+5%)
2-Year Target $311.96 (+11%)
3-Year Target $328.80 (+17%)
3-Yr Target (if PE normalizes) (PE: 23→20) PE COMPRESSION $280.05 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 23.0, Growth: 10.2%) $375.44 (+34%)
Base: (SPY PE: 20.1, Growth: 10.2%) $327.44 (+17%)
Bear: (PE: 17.1, Growth: 10.2%) $278.32 (-1%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Trailing PE: 25.50 | Current EPS (TTM): $10.95
Bull Case $342.27 (+22%)
Analyst growth 11.4%, PE expands to 28.1
Base Case $311.16 (+11%)
Market implied 11.4%, PE stable at 25.5
Bear Case $189.86 (-32%)
Severe decline -20.0%, PE contracts to 21.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: August 22, 2026 2:51 PM ET
Data refreshes hourly during market hours. Next update: 3:51 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
3
Buys
3
Sells
0
Net
INSIDERS SELLING
Recent Transactions
Ro Khanna BUY 2026-03-30
Ro Khanna BUY 2026-03-23
Richard McCormick BUY 2026-03-19

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Advanced ADP Option Strategies

Professional options setups generated by AI based on today's ADP price and gamma walls.

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