Traders Could Find a Payday in ADP

by Sam Collins | December 3, 2012 1:22 am

Traders Could Find a Payday in ADP

Automatic Data Processing (NASDAQ:ADP[1]) — This is one of the world’s largest independent computing services companies and the largest provider of payroll outsourcing services, offering tax filing and benefits administration. 

The company has a buyback program in force and recently increased its annual dividend by 10% to $1.74, marking the 38th consecutive year of dividend increases. The stock currently yields more than 3%.

ADP earned $2.82 in fiscal year (FY) 2012 versus analysts’ estimates of $2.75. It is expected to earn $2.91 in FY 2013, ended in June.

Technically the stock is in a long-term bull market, and on Nov. 29, it popped through its 200-day and 20-day moving averages, reversing from its bullish support line and confirming the trend. Note the high accumulation and MACD buy signal. The target for ADP is $65.

12 03 12 adp 300x217 Traders Could Find a Payday in ADP
Click to Enlarge

chart key 300x84 Traders Could Find a Payday in ADP

Endnotes:
  1. ADP: http://studio-5.financialcontent.com/investplace/quote?Symbol=ADP

Source URL: http://investorplace.com/2012/12/trade-of-the-day-automatic-data-processing-nasdaq-adp/
Short URL: http://invstplc.com/1nGKJA2