Forecast Of The Day: ADP Payroll Processing Clients

July 12th, 2022 by Trefis Team
-4.80%
Downside
294
Market
280
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. What To Expect From ADP’s Q1 Results?
  2. What To Expect From ADP’s Q4 Earnings?
  3. Will ADP’s Strong Gains Of Recent Years Continue?
  4. What To Expect From ADP’s Q4 Results?
  5. What To Expect From ADP’s Q3 Results?
  6. With The Job Market Holding Up, What To Expect From ADP’s Q2 Earnings?

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

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