ADP

Automatic Data Processing (ADP) has outperformed its industry with a 43.4% share price gain over six months. The company maintains a Zacks Rank #2 (Buy) rating with expected 5-6% revenue growth in fiscal 2027, driven by HCM technology, AI integration, and strategic acquisitions. Strong cash flow of $5.44B supports dividends, buybacks, and financial flexibility.

Strong economic reports drove market gains with PCE inflation cooling to its lowest levels since February and ADP private-sector payrolls more than doubling expectations at +90K for September. The data suggests the Federal Reserve may hold off on raising interest rates in October, providing relief to investors concerned about inflation.

Stock futures opened higher on September 30th, 2026, following better-than-expected economic reports. Core PCE inflation fell to 3.0% year-over-year, the lowest since February, easing Fed rate hike concerns. ADP private-sector payrolls surged to 90K in September, more than doubling the 68K consensus and marking the first up-month since May.