Tim Brown: Go Long With ADP

It has 46,000 full-time employees. In general, ADP's success is tied to the health of the economy. The economy isn't all that healthy and has definitely been hurting lately. Some see more pain in the future, while others say we've seen a good chunk of the bad times.

I will tell you this, I think things will eventually get better, and that makes ADP a strong long-term play.

The company dominates its market. It was pushing $50 back in November.. It's lost more than 10% of its value in the last year and yesterday it closed at $41.31.

I like its industry position and its price, and I like a lot of what I see on its balance sheet. It has revenue of $8.57 billion, operating cash flow of $1.48 billion and $1.68 per share in cash. It has a forward price-to-earnings (P/E) ratio of 17.16, which could be lower, but is still good. And it has institutional support -- 78% of the stock is owned by institutions. The higher the percentage, the more stable the stock is considered because institutional owners are generally viewed as buy-and-hold investors.

Whether the market goes up or down in the near term, I think this is a great long-term play.

Keep moving the chains!