Automatic Data Processing, Inc. (ADP) Could Deliver an EPS U…

Automatic Data Processing, Inc. (NASDAQ:ADP) is among the most profitable software stocks to invest in. On October 13, Jefferies reiterated its Hold rating on Automatic Data Processing, Inc. (NASDAQ:ADP), while maintaining a price target of $315.00, implying a potential upside of nearly 11%. With the company’s first-quarter fiscal 2025 results scheduled for October 29, the firm anticipates ADP to achieve consensus revenue and earnings per share expectations.

What’s noteworthy is that the company’s current estimates already capture the poor fourth-quarter Employer Services (ES) sales performance, as highlighted by Jefferies. The firm believes the company’s earlier EBIT margin guidance could become the basis of earnings per share (EPS) upside in the results.

Although Automatic Data Processing, Inc. (NASDAQ:ADP) has the potential for strong performance, Jefferies raised concerns about its weaker stock price performance. The company’s Professional Employer Organization (PEO) segment, which posted record-breaking sales in the fourth quarter, is expected to make a meaningful contribution to the results.

Automatic Data Processing, Inc. (NASDAQ:ADP), headquartered in Roseland, New Jersey, is a provider of cloud-based human capital management (HCM) solutions. Founded in 1949, the company operates through two segments, Employer Services and Professional Employer Organization (PEO).

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