Top Stock to Buy #1 – Automatic Data Processing (ADP)
Automatic Data Processing (NASDAQ:ADP) is one of the world’s largest independent computing services companies. It is the largest provider of payroll outsourcing services and offers tax filing and benefits administration.
Earnings increased to $2.82 in FY 2012 (ended in June) from $2.52 in FY 2011, and the company is expected to earn $2.89 in FY 2013.
In late June, the stock popped through a long-term resistance line with a breakaway gap — a very bullish event. It rallied to over $59 supported by three buy signals from our proprietary indicator, the Collins-Bollinger Reversal (CBR), and appears capable of breaking again to new highs.
Insiders have been buying ADP, and the company has a stock buyback program in force. The trading target is $65, but long-term buyers should hold this cornerstone tech stock.