Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Automatic Data Processing as such a stock due to the following factors:
- ADP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $212.6 million.
- ADP has traded 1.7 million shares today.
- ADP is trading at a new lifetime high.
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More details on ADP:
Automatic Data Processing, Inc., together with its subsidiaries, provides technology-based outsourcing solutions to employers and vehicle retailers and manufacturers worldwide. The stock currently has a dividend yield of 2.4%. ADP has a PE ratio of 27.9. Currently there are 5 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 13 rate it a hold.
The average volume for Automatic Data Processing has been 1.8 million shares per day over the past 30 days. Automatic Data Processing has a market cap of $38.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.84 and a short float of 0.8% with 1.53 days to cover. Shares are up 40.1% year to date as of the close of trading on Friday.
rates Automatic Data Processing as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, notable return on equity and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 224.88% to $81.30 million when compared to the same quarter last year.
- The net income increased by 7.6% when compared to the same quarter one year prior, going from $305.30 million to $328.60 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization.
- Compared to where it was trading one year ago, ADP is up 44.00% to its most recent closing price of 79.78. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.
- You can view the full Automatic Data Processing Ratings Report.