Editor's Note: Automatic Data Processing is a Trifecta Stocks holding. If you own, or are thinking of owning ADP, you HAVE to sign up for the FREE webinar hosted by TheStreet's fundamental expert Bryan Ashenberg and technical expert Bob Lang. Sign up now!
NEW YORK (TheStreet) -- Automatic Data Processing (ADP), an HR-related software and services company, has grown steadily as the economy improves, job growth continues and interest rates rise. In the year to date, ADP shares have risen 23.26% in value. Trifecta Stocks' Bryan Ashenberg and Bob Lang agree this is a company "not resting on its laurels".
ADP recently hosted an 'Innovation Day', where it released a number of technological solutions to human capital problems, including payroll, administration and compliance issues. Innovations included a tablet app for its Mobile Solutions program which allows pay, hours and benefits to be tracked, a revamped version of ADP's Document Cloud and improved analytics software.
The key to ADP's growth, says Ashenberg and Lang, is how it leverages its software-as-a-service (SaaS) offerings across its existing client base through upselling and cross-selling.
"As more investors become aware of this significant revenue (estimated at over $1 billion in sales with over 40,000 clients), we believe the stock will realize some value," they explain.
The company is slated to report first-quarter earnings for the period ended September 30 on October 30.
TheStreet Ratings team rates Automatic Data Processing as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: