Automatic Story

ADP -- USA Stock

USD 174.94 2.56 1.44%

Macroaxis Story

It appears that Automatic Data will continue to recover much faster as its share price surged up 1.03% today. Automatic Data Proce current daily volatility is 1.32 percent, with a beta of 0.89 and an alpha of -0.05 over DOW. While some baby boomers are getting worried about business services, it is reasonable to recap Automatic Data Processing. What exactly are Automatic Data shareholders getting in February?

Published over a month ago

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Should you take up Automatic Data Processing after the recent volatility roll up?

Automatic Data Processing has roughly 1.62 B in cash with 3.08 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.77. Macroaxis provides advice on Automatic Data Proce to complement and cross-verify current analyst consensus on Automatic Data Processing. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.

Investing in Automatic Data, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Automatic Data along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Automatic Data's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Automatic Data in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Automatic Data. Your research has to be compared to or analyzed against Automatic Data's peers to derive any actionable benefits. When done correctly, Automatic Data's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Automatic Data Procs.

How important is Automatic Data's Liquidity

Automatic Data financial leverage refers to using borrowed capital as a funding source to finance Automatic Data Procs ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Automatic Data financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Automatic Data's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Automatic Data, but it might be worth checking our own buy vs. sell analysis

Automatic Data Correlation with Peers

Investors in Automatic can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Automatic Data Procs. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Automatic Data and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Automatic is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.

Please check volatility of Automatic for more details

Breaking it down

We consider Automatic Data very steady. Automatic Data Proce secures Sharpe Ratio (or Efficiency) of 0.0683, which signifies that the company had 0.0683% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Automatic Data Processing, which you can use to evaluate future volatility of the firm. Please confirm Automatic Data Proce Risk Adjusted Performance of 0.1064, downside deviation of 1.36, and Mean Deviation of 1.1 to double-check if the risk estimate we provide is consistent with the expected return of 0.0898%.

	ADP	DHX	HHR	HQI	JOB
ADP		0.0	0.75	0.34	-0.09	ADP
DHX	0.0		0.52	0.54	0.78	DHX
HHR	0.75	0.52		0.63	0.37	HHR
HQI	0.34	0.54	0.63		0.53	HQI
JOB	-0.09	0.78	0.37	0.53		JOB
	ADP	DHX	HHR	HQI	JOB

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Automatic technical analysis suggests possible collapse

Automatic Data recent mean deviation upswings over 1.1. Automatic Data Processing has relatively low volatility with skewness of 0.69 and kurtosis of 3.3. However, we advise all investors to independently investigate Automatic Data Processing to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Automatic Data

Although other entities under the staffing & employment services industry are still a bit expensive, Automatic Data may offer a potential longer-term growth to insiders. To summarize, as of the 27th of January 2021, our analysis shows that Automatic Data follows the market closely. The firm is fairly valued and projects very small chance of bankruptcy for the next 2 years. Our actual 30 days buy-or-sell advice on the firm is Strong Hold.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Automatic Data Procs. Please refer to our Terms of Use for any information regarding our disclosure principles.

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Automatic Story

USD 174.94 2.56 1.44%

How important is Automatic Data's Liquidity

What do experts say?

Automatic Data Correlation with Peers

Breaking it down

Automatic technical analysis suggests possible collapse

Our Conclusion on Automatic Data

About Contributor

Would you like to provide feedback on the content of this article?

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