ADP Shares Soar 2.08% on Strong Q3 Earnings

Automatic Data Processing (ADP) shares surged 2.08% today, marking the second consecutive day of gains, with a total increase of 2.49% over the past two days. The stock price reached its highest level since March 2025, with an intraday gain of 2.11%.

The strategy of buying ADP shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 8.6% from May 2020 to May 2025, slightly underperforming the market by 1.4 percentage points. With a final value of $3,014.78 for a $1,000 investment, the strategy provided a decent growth, though it was lower than the market average.

ADP's recent performance has been bolstered by several key factors. The company reported a robust third-quarter performance, with revenue growing by 6%. This strong financial performance likely boosted investor confidence and contributed to the positive stock price movement.

Additionally, ADP's Q1 CY2025 results exceeded Wall Street's revenue expectations, further enhancing investor sentiment. The company's ability to outperform market forecasts has been a significant driver of its stock price.

Looking ahead, ADP has announced an Investor Day scheduled for June 12, 2025. Such events are crucial for generating investor interest and providing insights into the company's future strategies and financial outlook, which can influence stock price movements.

Furthermore, Barclays recently raised its target price for ADP from $325.00 to $350.00, maintaining an "overweight" rating. This upgrade reflects positive market perceptions and can serve as a catalyst for further stock price appreciation.