Is Automatic Data Processing (ADP) Stock Outpacing Its Business Services Peers This Year?
Investors focused on the Business Services space have likely heard of Automatic Data Processing (ADP), but is the stock performing well in comparison to the rest of its sector peers? Let's take a closer look at the stock's year-to-date performance to find out.
Automatic Data Processing is a member of our Business Services group, which includes 192 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. ADP is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ADP's full-year earnings has moved 1.91% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ADP has moved about 11.10% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of 10.25% on a year-to-date basis. As we can see, Automatic Data Processing is performing better than its sector in the calendar year.
Looking more specifically, ADP belongs to the Outsourcing industry, a group that includes 14 individual stocks and currently sits at #99 in the Zacks Industry Rank. Stocks in this group have gained about 11.36% so far this year, so ADP is slightly underperforming its industry this group in terms of year-to-date returns.
Investors in the Business Services sector will want to keep a close eye on ADP as it attempts to continue its solid performance.
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