Automatic Data Processing (ADP): Today's Featured Technology Laggard

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.

Automatic Data Processing ( ADP) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.7%. By the end of trading, Automatic Data Processing fell $0.92 (-1.3%) to $71.10 on average volume. Throughout the day, 1,317,880 shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 1,738,500 shares. The stock ranged in price between $70.89-$72.00 after having opened the day at $71.71 as compared to the previous trading day's close of $72.02. Other companies within the Technology sector that declined today were: Friendfinder Networks ( FFN), down 92.3%, Alteva ( ALTV), down 33.5%, Angie's List ( ANGI), down 17.5% and Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), down 16.6%.

Automatic Data Processing, Inc., together with its subsidiaries, provides technology-based outsourcing solutions to employers and vehicle retailers and manufacturers worldwide. Automatic Data Processing has a market cap of $35.2 billion and is part of the computer software & services industry. Shares are up 28.1% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 14 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, CSR ( CSRE), up 200.9%, Ascent Solar Technologies ( ASTI), up 22.4%, Zoom Technologies ( ZOOM), up 16.5% and CalAmp Corporation ( CAMP), up 14.2% , were all gainers within the technology sector with SunEdison ( SUNE) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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