Automatic Data Processing (ADP) Is Going Nowhere. Here’s Why.

ADP stock is going nowhere
Of course, there’s still the old investing truism to consider — that investing isn’t about what a stock has done in the past, but what it might do in the future. Problem is, ADP’s numbers here are no great shakes, either.

So once again, we find Automatic Data Processing (NASDAQ:ADP) stock occupying a place in the middle of the pack — but actually only barely edging out Paychex, Inc. (NASDAQ:PAYX) in future growth, and lagging Intuit Inc. (NASDAQ:INTU) rather badly.

So to sum up, ADP isn’t the cheapest of these three stocks — that would be Intuit. It has grown and is likely to continue growing slower than Intuit Inc. (NASDAQ:INTU). Topping it all off, ADP earns a lower operating profit margin on its revenues, and it pays a worse dividend yield (2.4%) than does Paychex, Inc. (NASDAQ:PAYX) (3.4%).

Despite all this, Automatic Data Processing (NASDAQ:ADP) stock has outperformed that of its peers over the past 12 months. But judging from the numbers, there’s very little reason to expect that trend to continue in the future. To the contrary, I think it’s much more likely we’ll see Automatic Data Processing (NASDAQ:ADP) stock go exactly nowhere.

The article ADP Stock Is Going Nowhere. Here’s Why. originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends ADP, Intuit Inc. (NASDAQ:INTU), and Paychex, Inc. (NASDAQ:PAYX) and owns shares of Intuit.

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