We recently compiled a list of the Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024. In this article, we are going to take a look at where Automatic Data Processing, Inc. (NASDAQ:ADP) stands against the other companies that hit $100 billion in market cap in 2024.

Jim Cramer, the host of Mad Money, recently discussed a number of companies that have surpassed $100 billion in market capitalization this year, noting how these companies seem to reflect the current market mood. According to Cramer, it used to be a significant achievement for a company to reach the $100 billion mark, as most companies would never attain that level of market cap.

READ ALSO 10 Best Jim Cramer Stocks to Buy According to Analysts and Jim Cramer’s Lightning Rounds: 12 Stocks Under the Spotlight

He emphasized the immense effort and determination required to achieve such a feat. However, Cramer pointed out that in today’s market, the $100 billion threshold has lost some of its significance, given the recent surge in stock valuations. He highlighted that, as of the market close last Friday, 18 companies had crossed the $100 billion mark in 2024, a notable increase that speaks to the current market dynamics.

Cramer acknowledged that stocks, like everything else, had to contend with inflation, which remains a persistent issue. He went on to say:

“I know we’re experiencing a heightened market, with expectations really running so hot that you can’t believe that a presidential rally, or, let’s say, an end-of-the-year rally and a stock shortage rally are all in play at once. Many of these stocks got clocked today as part of a sell-off that seemed to infect the year’s best performers. I don’t know how long it’ll last, maybe some great buying opportunities already.”

Cramer concluded that the massive influx of capital into the market is a clear driver behind the rise in companies reaching the $100 billion valuation.

“But bottom line: When you get this much money coming in, you can see how all these companies can reach $100 billion, creating a huge amount of wealth, at least on paper. One more reason why it wouldn’t be so bad if some of the winning investors in this market took something delicious off the table.”

Our Methodology

For this article, we compiled a list of 18 stocks that were discussed by Jim Cramer during the episode of Mad Money on December 9. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Automatic Data Processing, Inc. (NASDAQ:ADP)

Number of Hedge Fund Holders: 49

Discussing Automatic Data Processing, Inc. (NASDAQ:ADP), Cramer stated:

“Now it was a big cluster with gains in the mid-fifties… Then there’s Automatic Data Processing. By the way, that’s a company synonymous with growing payrolls. Isn’t that an oddity when the Fed’s cutting rates?”

Automatic Data Processing (NASDAQ:ADP) provides cloud-based human capital management solutions, offering a range of HR outsourcing services and platforms for businesses, along with comprehensive HR and employment administration outsourcing through a co-employment model. In October, it expanded its workforce management capabilities by acquiring WorkForce Software, a leading provider of workforce management solutions for large, global enterprises for around $1.2 billion in cash.

This acquisition improves ADP’s global workforce management offerings and positions the company to drive future innovation in the space. ADP’s first-quarter fiscal 2025 earnings exceeded revenue and EPS expectations, fueled by strong growth in new business bookings, high client revenue retention, and increased interest revenue from client funds. During the quarter, the company launched a platform upgrade with ADP Lyric HCM, highlighting its ongoing commitment to investing in innovative technology, particularly in AI and machine learning.

Automatic Data Processing (NASDAQ:ADP) outlook for fiscal 2025 remains positive. The company has raised its revenue growth forecast to 6% to 7% for the year, reflecting the recent acquisition of WorkForce Software and its ongoing strong business momentum. Additionally, ADP is projecting EPS growth of 7% to 9%, signaling continued improvement in its operational profitability.

Overall ADP ranks 16th on our list of the companies that hit $100 billion in market cap in 2024 according to Jim Cramer. While we acknowledge the potential of ADP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.