Jim Cramer Shed Light on These 19 Stocks Recently

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

Number of Hedge Fund Holders: 57

Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the stocks Jim Cramer shed light on recently. Cramer called the company’s results “confusing,” as he commented:

Fourth, we got really confusing results from Automatic Data, ADP, America’s top payroll processor. On Wednesday, the stock went down 1.5%. When you zoom out, this was just the latest leg lower for ADP, which is now off more than 25% from its highs last year. And this is a really good company. What’s weird about this one is the fact that the quarter really didn’t seem all that bad. I went through it. I didn’t see much I didn’t like. ADP gave us solid top and bottom line beat.

They also raised the low end of their full-year sales and earnings forecast for fiscal 2026. On paper, it was clean beat and raise. What gives? To me, it looked like Wall Street’s simply convinced that the payroll processors are doomed, thanks to the rise of, yes, I know you’re probably tired of hearing it, AI.

When ADP’s management was asked about this on the call, CFO Peter Hadley said they’re “not really seeing anything discernible there,” even as they’re watching it closely. Even that bothered people. Jeez. Obviously, the broader job market has slowed, but ADP’s numbers are fine for the time being. I can’t tell whether the market’s getting this one wrong. I know the analysts were a little bit tough on these guys. For now, all I know is that ADP, Paychex, and their fellow travelers have become [the house of pain].

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management platforms and HR outsourcing services. The company offers software for payroll, compliance, talent management, and employee benefits administration.