Skip to content

Automatic Data Processing, Inc.

ADP position long Bill Stewart, Stewart Asset Management

Thesis

ADP is a well-managed company with a strong market position in payroll and HR services, generating recurring revenue. Although growth is expected to be slower due to its size, the company is still projected to double its earnings over the next five years, making it a solid long-term hold.

Did it work?

inconclusive confidence: low

The thesis rests on a five-year earnings-doubling projection and a long-term hold, but no time elapsed and no price performance data are available, so there is no way to measure progress toward the target. The qualitative claims (strong market position, recurring revenue) are plausible for ADP, but nothing confirms or breaks the thesis. Without either a meaningful portion of the horizon elapsed or a decisive catalyst confirmed, the outcome cannot be judged.