Wells Fargo has initiated coverage on Automatic Data Processing Inc (ADP), assigning the stock an Underweight rating. This marks the firm's first assessment of ADP's investment potential, reflecting its research into the company's business model, industry dynamics, and growth prospects.
ADP operates in the professional services sector, providing cloud-based human capital management solutions. Headquartered in Roseland, New Jersey, the company employs 67,000 full-time staff and serves over 1.1 million clients across 140 countries. Its offerings range from payroll services to benefits administration and retirement solutions, catering to businesses of all sizes.
As of October 21, 2025, ADP's stock is priced at $254.71, with a market capitalization of $102.9 billion and a P/E ratio of 24.88. The company reported Q1 2026 earnings per share of $2.49, slightly above expectations of $2.46, continuing a trend of earnings surprises over the past several quarters.
Analyst ratings are often seen as valuable insights, yet they are based on assumptions that may not always hold true. Investors should consider a range of factors, including company fundamentals and market conditions, when evaluating their options. Notably, the analyst consensus on ADP currently stands at Hold, with 2 Strong Buy, 4 Buy, 13 Hold, 2 Sell, and no Strong Sell ratings among 21 total analysts.