Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024

16. Automatic Data Processing, Inc. (NASDAQ:ADP)

Number of Hedge Fund Holders: 49

Discussing Automatic Data Processing, Inc. (NASDAQ:ADP), Cramer stated:

“Now it was a big cluster with gains in the mid-fifties… Then there’s Automatic Data Processing. By the way, that’s a company synonymous with growing payrolls. Isn’t that an oddity when the Fed’s cutting rates?”

Automatic Data Processing (NASDAQ:ADP) provides cloud-based human capital management solutions, offering a range of HR outsourcing services and platforms for businesses, along with comprehensive HR and employment administration outsourcing through a co-employment model. In October, it expanded its workforce management capabilities by acquiring WorkForce Software, a leading provider of workforce management solutions for large, global enterprises for around $1.2 billion in cash.

This acquisition improves ADP’s global workforce management offerings and positions the company to drive future innovation in the space. ADP’s first-quarter fiscal 2025 earnings exceeded revenue and EPS expectations, fueled by strong growth in new business bookings, high client revenue retention, and increased interest revenue from client funds. During the quarter, the company launched a platform upgrade with ADP Lyric HCM, highlighting its ongoing commitment to investing in innovative technology, particularly in AI and machine learning.

Automatic Data Processing (NASDAQ:ADP) outlook for fiscal 2025 remains positive. The company has raised its revenue growth forecast to 6% to 7% for the year, reflecting the recent acquisition of WorkForce Software and its ongoing strong business momentum. Additionally, ADP is projecting EPS growth of 7% to 9%, signaling continued improvement in its operational profitability.