Automatic Data Processing (ADP) shares have dropped 37% from their June 2025 peak, trading around $204, despite strong fundamentals. ADP processes payroll for about one-sixth of U.S. workers and has raised its dividend for 51 consecutive years, now yielding roughly 3.3%. The company recently reported better-than-expected earnings and revenue growth, raised full-year guidance, and benefits from a growing interest income on client funds. Its use of AI enhances its competitive advantage rather than threatening its business. The current stock price appears to undervalue ADP's durable cash flows and growth potential, presenting a potential buying opportunity.
For the four weeks ending June 27, 2026, US private employers added an average of 19,750 jobs per week, marking a slowdown in hiring for the third consecutive week. This data comes from the ADP National Employment Report's weekly update, the NER Puls...
The SCHD ETF has returned just under 2% in the past month, outperforming the S&P 500 ETF (SPY) by nearly 1%. Year-to-date, about 30 SCHD holdings have more than doubled the returns of SPY, which has returned 9.8%. Additionally, 31 SCHD holdings are t...
