10 Software Stocks Analysts Are Upgrading

6. Automatic Data Processing, Inc. (NASDAQ:ADP)

Number of Hedge Fund Holders: 65

Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the 10 software stocks analysts are upgrading. On June 13, Mizuho increased the price objective on the company’s stock to $332.00 from $321.00, while maintaining an “Outperform” rating. The firm believes that Automatic Data Processing, Inc. (NASDAQ:ADP) has done a good job over the past few years in improving product and execution.

The research firm remains optimistic about Automatic Data Processing, Inc. (NASDAQ:ADP)’s future prospects as it has been introducing revamped products throughout the market segments and continues to leverage its human capital management industry-leading data and scale with tools such as AI in a bid to improve efficiencies. Automatic Data Processing, Inc. (NASDAQ:ADP)’s strategic moves, like the acquisition of PEI in Mexico, focus on enhancing its global payroll capabilities and aiding the Latin America region.

With the help of integrating PEI’s payroll expertise in Mexico with Automatic Data Processing, Inc. (NASDAQ:ADP)’s global reach and comprehensive HCM solutions, the focus is on enhancing the experience. For FY 2025, the company expects revenue growth of 6% – 7% and adjusted EBIT margin expansion of 40 – 50 bps. Furthermore, it anticipates diluted EPS growth of 9% – 10%.

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management (HCM) solutions.