Market Underestimating the Growth Potential of Automatic Data Processing (ADP), Says Guggenheim

Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the Best Stocks to Buy While the Market Is Down.

On April 20, Guggenheim maintained a Buy rating on the stock with a price target of $270. The firm argues that the market is underestimating the growth potential of ADP, particularly its enterprise human capital management tool Lyric. Guggenheim noted that industry experts and consumer checks show how ADP Lyric performs well in complex payroll environments such as healthcare.

Moreover, Lyric also works well when deployed as a payroll and compliance layer alongside existing human capital management tools such as Workday and SAP. The firm noted that this “co‑existence” model lets the company serve complex workforce segments it otherwise might not reach. The analyst notes that this “buying motion” broadens ADP’s total addressable market because Lyric can land deals without dislodging the entire legacy human capital management stack.

Automatic Data Processing, Inc. (NASDAQ:ADP) set to release its fiscal Q3 2026 earnings on April 29. Wall Street expects the quarterly revenue around $5.85 billion along with a GAAP EPS estimate of $3.30. The company provides cloud-based human capital management solutions globally.

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