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Automatic Data Processing

  • Invest in This Stock for Turbo Growth

    By Mihir Mehta - June 14, 2013 | Tickers: ADP, HRB, INTU

    In late April, shares of Intuit (NASDAQ: INTU) plummeted when it lowered its guidance owing to a slowdown in its consumer tax business. It revised its third quarter EPS outlook to $2.92 to $2.94 per share because the performance of the consumer tax business disappointed management. Almost a month later, it announced its Q3 results, beating its guidance on revenue. The shares surged around 4% after the results more »

  • Dividend Investment Opportunities

    By Austin Higgins - June 14, 2013 | Tickers: ADP, IBM, MSFT

    Many investors pick stocks that will give them a strong dividend yield. With some uncertainty in the future of interest rates, finding the right income investment will be extremely important. Here are just a few options for investors looking to capitalize on strong dividend yields. 

    Payment processing tied to employment numbers

    One company with a strong dividend yield is Automatic Data Processing (NASDAQ: ADP). ADP is a payroll processing company more »

  • How to Play the Data Processing Sector

    By Matthew Frankel - June 10, 2013 | Tickers: ADP, INTU, PAYX

    Paychex (NASDAQ: PAYX), one of the leading providers of payroll services in the United States, specializes in small and medium sized companies and serves almost 600,000 clients. Lately the company has performed well, with solid growth so far during the current fiscal year and strong stock performance. What caught my attention about Paychex was the company’s completely flat revenue numbers for the past five years or so, after more »

  • Wide-Moat Company Offers Long-Term Outperformance

    By Ted Cooper - May 24, 2013 | Tickers: ADP, MSFT, PAYX

    The biggest mistake most investors make is focusing on valuation instead of focusing on businesses. Any simple screen will turn up hundreds of companies trading at low multiples of earnings, but few of those companies are even worth considering as a long-term investment.

    A "cheap" stock is not a great investment if the business does not assure some base level of earning power that offers safety of principle and a more »

  • Do These 3 Service Stocks Offer Growth To Investors?

    By Victor Selva - May 23, 2013 | Tickers: ADP, FISV, FLT

    Business services have been on the rise as companies seeking to increase efficiency seek to outsource specific processes. FleetCor (NYSE: FLT), Fiserv (NASDAQ: FISV), and Automatic Data Processing (NASDAQ: ADP) are three service companies, focused on financial-related activities, that offer interesting growth prospects thanks to their strong products, brand positioning, compelling business models, and wide moats.

    A company with high potential 

    FleetCor provides specialized payment products and services to commercial more »

  • These Two Industry Leaders Are Fully Valued

    By Robert Ciura - May 22, 2013 | Tickers: ADP, PAYX

    The two major payroll processing companies in the United States, Automatic Data Processing (NASDAQ: ADP) and Paychex (NASDAQ: PAYX) are darlings of the income investor community. Both companies provide a critical service that nearly all companies need, and they pay their investors solid dividend yields that exceed the yield on the broader market.

    While ADP and Paychex provide new investors with dividend yields of 2.4% and 3.4%, respectively more »

  • Two Plays for Higher Interest Rates

    By Jordan Wathen - May 7, 2013 | Tickers: ADP, FII, TBT

    Think rising interest rates are around the corner?  So does everyone else. At near-zero, rates have only one way to go: up.

    Positioning yourself for rising rates isn't easy. Some say the best way to play higher rates is in complex ETFs like ProShares UltraShort 20+ Year Treasury ETF (NYSEMKT: TBT), which tracks inversely (and then doubles!) the change in daily Treasury prices. Shorting treasuries will make you money more »

  • 5 Dividend Stocks That Are as Safe as Treasuries

    By Meena Krishnamsetty - May 6, 2013 | Tickers: ADP, XOM, GE, JNJ, MSFT

    Standard & Poor’s currently gives United States Treasuries a credit rating of AA+, just below the maximum AAA credit rating (the other two major ratings agencies, Fitch and Moody’s, still give the U.S. their highest rating). Current Treasury yields are quite low, possibly reflecting a market view that U.S. debt has little risk. Meanwhile, some stocks with higher credit ratings pay considerably higher dividend yields and interest more »

  • This Industry Is Tied Directly to Job Numbers

    By Austin Higgins - April 12, 2013 | Tickers: ADP, NSP, PAYX

    The state of employment in the United States is very crucial to the investment community. In March, only 88,000 jobs were added. The unemployment rate dropped to 7.6%. While more jobs and lower unemployment is good news, it wasn’t good enough as the growth isn’t able to sustain population growth. One particular industry that gets hit with this news it the business outsourcing industry. So what more »

  • 5 Reasons You Will Like Paychex

    By Shas Dey - April 3, 2013 | Tickers: ADP, INTU, PAYX

    Paychex (NASDAQ: PAYX) is a leading provider of payroll, human resource and benefits outsourcing to over 567,000 small to medium sized business. Needless to say, this business is largely dependent on the economic recovery and unemployment rate. In the last couple of years, lower employment growth and interest rates have been headwinds for the company. However, just like the economy, Paychex is moving ahead slowly, corroborated by its 3Q12 more »

  • The Most Profitable Payroll Service Company

    By Anh HOANG - April 2, 2013 | Tickers: ADP, NSP, PAYX

    Since the end of 2012, Paychex (NASDAQ: PAYX) has witnessed a nice rally, climbing from around $31 per share to more than $35 per share, a gain of 12.9%. Recently, it announced impressive Q3 results, which beat analysts’ estimates. Is Paychex a decent investment opportunity at its current price? Let’s find out.

    Business snapshot

    Paychex is one of the leading providers of payroll, human resource, and benefits outsourcing more »

  • Where Next for This High Yield Play?

    By Lee Samaha - March 30, 2013 | Tickers: ADP, INTU, PAYX

    One of the most important parts of successful investing is to quickly discern the key drivers of a company’s stock price. Of course, it is easier said than done! It is a bit like deciding how an election is won. Different voters vote for different things. However, in the case of Paychex (NASDAQ: PAYX) I think I know what the campaign issues are likely to be.

    Paychex Pays You more »

  • This Payment Processor Could Provide Years Of Growth And Income

    By Matthew Frankel - March 26, 2013 | Tickers: ADP, INTU, PAYX

    Paychex (NASDAQ: PAYX) is one of the leading payroll processors in the U.S., and in fact several of my previous employers used the company’s services. What I was surprised to find was that Paychex meets all of my criteria for what a long-term investment needs to have. In addition to its long-range merits, I believe there is also some short-term growth to be had, as the success of more »

  • Investing In The Final Four

    By Joseph Harry - March 22, 2013 | Tickers: ADP, XOM, JNJ, MSFT

    I'm not talking about NCAA basketball. March madness is here and everyone is filling out their brackets. You may not correctly pick the final four teams in the tournament (if you are as terrible at picking teams as I am, your bracket may be out of the race way before the final four even starts), but you can hedge a potential heart-breaking loss by investing in another "final four more »

  • H&R Block: Income And Growth For Cheap

    By Marshall Hargrave - March 21, 2013 | Tickers: ADP, FISV, HRB, INTU, PAYX

    H&R Block, Inc. (NYSE: HRB) recently released the news that around 600,000 tax refunds could be delayed, namely for students, due to a problem related to filing of form 8863 (for student tax credits). Yet, the news has had little bearing on the stock, although there has been some outrage by tax filers. This led me to take a hard look at the company and its industry. For more »

  • Can This Upstart Compete With the Benefits Giants?

    By Robert Hanley - March 14, 2013 | Tickers: AON, ADP, WAGE

    Companies both large and small continue to struggle with rising health care and compliance costs, which was only exacerbated by the passage of federal health care reform in 2010. In response, they have increasingly outsourced the design and administration of benefits packages to third parties, while encouraging their employees to use tax-advantaged spending accounts. The shift has benefited companies like WageWorks (NYSE: WAGE), a leading provider of consumer-directed benefit (CDB more »

  • High Switching Costs Make This Stock a Bargain

    By Ted Cooper - March 5, 2013 | Tickers: ADP, MSFT, PAYX | Editor's Choice

    Determining whether a company has a sustainable competitive advantage is the most important part of any investment analysis for long-term shareholders. Companies that do not have sustainable competitive advantages will eventually succumb to competition. However, those that have wide moats often reward shareholders for years to come.

    When looking for wide-moat companies, investors need look no further than the payroll processing industry. Two payroll processors -- Paychex (NASDAQ: PAYX) and Automatic more »

  • Why the Sequester Is Your Friend

    By Lee Samaha - February 28, 2013 | Tickers: AAPL, ADP, XOM, JNJ, MSFT

    For those investors focused on the big picture I thought I would share a few thoughts on the current situation. I previously discussed some of the worrying structural trends in the US economy in an article linked here, and in this article I want to discuss why so many commentators are getting it completely wrong.

    What Went Wrong With the Free Market?

    The problem with free market thinking is that more »

  • 5 Dividend Stocks from Alpha-Generating All Cap Value Fund

    By Meena Krishnamsetty - February 20, 2013 | Tickers: ADP, BLK, INTC, NSC, UPS

    There are two income mutual funds that pursue stocks of companies with solid dividend payout ratios and consistent dividend growth of at least 5 years in a row. These funds are ASTON/River Road Dividend All Cap Value Fund (ARDEX)(ARIDX) and ASTON/River Road Dividend All Cap Value Fund II (ADVTX)(ADIVX). The two funds have similar compositions. The first fund is closed to new investments, but the second more »

  • 3 Companies that will Benefit From the Recovering Economy

    By Madhu Dube - February 14, 2013 | Tickers: ADP, TGT, USG, WMT

    In past few years the US economy has been through a rough patch. Earnings were down, spending was down, unemployment was high and so was retrenchment. But we have moved a long way since then, with the economy now showing signs of recovery. In this article I have picked up three stocks which have benefited because of the stabilization of the economy. I anticipate that as the markets gains more more »

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