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Is Automatic Data Processing (ADP) Outperforming Other Business Services Stocks This Year?

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Automatic Data Processing (ADP) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

Automatic Data Processing is one of 207 individual stocks in the Business Services sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. ADP is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ADP's full-year earnings has moved 12.64% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, ADP has moved about 0.33% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 6.84%. As we can see, Automatic Data Processing is performing better than its sector in the calendar year.

Looking more specifically, ADP belongs to the Outsourcing industry, which includes 14 individual stocks and currently sits at #61 in the Zacks Industry Rank. On average, this group has gained an average of 3.69% so far this year, meaning that ADP is slightly underperforming its industry in terms of year-to-date returns.

Investors with an interest in Business Services stocks should continue to track ADP. The stock will be looking to continue its solid performance.


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