Automatic Data Processing (ADP): Today's Featured Computer Software & Services Winner

Automatic Data Processing ( ADP) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Automatic Data Processing rose 47 cents (0.8%) to $56.47 on average volume. Throughout the day, 2.4 million shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $55.55-$56.69 after having opened the day at $55.66 as compared to the previous trading day's close of $56. Other companies within the Computer Software & Services industry that increased today were: Asure Software ( ASUR), up 15.9%, iSoftStone Holdings ( ISS), up 11.8%, Astea International ( ATEA), up 11.7%, and VanceInfo Technologies ( VIT), up 11.1%.

Automatic Data Processing, Inc. provides business outsourcing solutions. The company operates in three segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. Automatic Data Processing has a market cap of $27.39 billion and is part of the technology sector. The company has a P/E ratio of 20.1, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Automatic Data Processing a buy, two analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Automatic Data Processing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, RealNetworks ( RNWK), down 7%, Intellicheck Mobilisa ( IDN), down 6.1%, MakeMusic ( MMUS), down 5.8%, and DigitalGlobe ( DGI), down 5.4%, were all losers within the computer software & services industry with Infosys ( INFY) being today's computer software & services industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).
null

If you liked this article you might like

Automatic Data Processing: Cramer's Top Takeaways

Automatic Data Processing: Cramer's Top Takeaways

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

It's a Flash Sale!: Cramer's 'Mad Money' Recap (Wednesday 1/31/18)

Bill Ackman's Message to Nike Is - Just Do It

Bill Ackman's Message to Nike Is - Just Do It

The S&P 500 Has Gone Parabolic, So Hurry Up and Buy These 22 Stocks

The S&P 500 Has Gone Parabolic, So Hurry Up and Buy These 22 Stocks

Don't Miss This Chance to Buy: Cramer's 'Mad Money' Recap (Monday 1/22/18)

Don't Miss This Chance to Buy: Cramer's 'Mad Money' Recap (Monday 1/22/18)