Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the The best stocks to buy while the market is down.
On April 20, Guggenheim maintained a Buy rating on the stock with a $270 price target. The firm maintains that the market is underestimating the growth potential of ADP, particularly its Lyric enterprise human capital management tool. Guggenheim noted that industry experts and consumer controls show how ADP Lyric performs well in complex payroll environments like healthcare.
Additionally, Lyric also works well when implemented as a payroll and compliance layer alongside existing human capital management tools such as Workday and SAP. The firm noted that this “coexistence” model allows it to serve complex segments of the workforce that it would not otherwise be able to reach. The analyst notes that this “buying move” expands ADP’s total addressable market because Lyric can close deals without dislodging its entire human capital management legacy.
Automatic Data Processing, Inc. (NASDAQ:ADP) will release its fiscal third quarter 2026 earnings on April 29. Wall Street expects quarterly revenue of around $5.85 billion along with a GAAP EPS estimate of $3.30. The company offers cloud-based human capital management solutions globally.
While we recognize ADP’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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