5 Best Human Resources Stocks To Buy Today

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

Number of Hedge Fund Holders: 53

Automatic Data Processing, Inc. (NASDAQ:ADP) primarily focuses on two major segments – Employer Services and Professional Employer Organization. The company uses its cloud-based platform to provide solutions for human capital management. Within the first segment, services include talent recruitment, payroll, workforce management and administration, using the online platform. In contrast, the second segment mainly comprises outsourcing solutions for all business needs on a co-employment model. On July 26, Automatic Data Processing, Inc. (NASDAQ:ADP) reported a FQ4 non-GAAP EPS of $1.89 and a revenue of $4.5 billion, topping market consensus by $0.06 and $110 million, respectively. 

According to Insider Monkey’s first quarter database, 53 hedge funds were bullish on Automatic Data Processing, Inc. (NASDAQ:ADP). In contrast, the previous quarter saw 49 hedge funds holding a similar position. Terry Smith’s Fundsmith LLP held the largest stake in the company, comprising 5.5 million shares worth $1.2 billion. 

Madison Sustainable Equity Fund made the following comment about Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q1 2023 investor letter:

“We eliminated Automatic Data Processing, Inc. (NASDAQ:ADP) from the portfolio due to concerns that the economy is close to a peak job market and interest income on the company’s float has also peaked along with interest rates. The company’s valuation does not reflect the potential downside in the job market from a weakening economy.”