Can Automatic Data Processing (ADP) Defy Wall Street’s AI Disruption Narrative?

2 days ago 4

Attiya Zainib

Tue, June 2, 2026 astatine 11:45 AM CDT 3 min read

The Mairs & Power, an concern firm, released the first-quarter 2026 capitalist missive for the “Mairs & Power Balanced Fund.” A transcript of the missive tin beryllium downloaded here. The money returned -1.77% successful the archetypal 4th of 2026, outperforming its benchmark composite scale diminution of -2.68% arsenic beardown banal enactment and vulnerability to Utilities and Industrials helped offset marketplace volatility triggered by the Iran struggle and rising vigor prices. The money said ostentation concerns resurfaced aft Middle East tensions pushed lipid prices higher, causing the Federal Reserve to follow a much cautious stance connected involvement rates. Despite the uncertain backdrop, the steadfast maintained a constructive semipermanent outlook, citing resilient firm earnings, improving small-cap trends, and charismatic opportunities successful reasonably valued sectors specified arsenic Utilities, Industrials, and Health Care. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2026.

In its first-quarter 2026 capitalist letter, Mairs & Power Balanced Fund highlighted stocks similar Automatic Data Processing, Inc. (NASDAQ:ADP). Automatic Data Processing, Inc. (NASDAQ:ADP) provides payroll, quality resources, and workforce absorption solutions to employers worldwide. The one-month instrumentality of Automatic Data Processing, Inc. (NASDAQ:ADP) was 329.93% portion its shares traded betwixt $188.16 and $329.93 over the past 52 weeks. On June 1, 2026, Automatic Data Processing, Inc. (NASDAQ:ADP) banal closed astatine astir $220.08 per share, with a marketplace capitalization of astir $91.68 billion.

Mairs & Power Balanced Fund stated the pursuing regarding Automatic Data Processing, Inc. (NASDAQ:ADP) in its Q1 2026 capitalist letter:

"Offsetting this, fears astir AI impacting bundle pricing and jobs into the aboriginal negatively affected Automatic Data Processing, Inc. (NASDAQ:ADP). We reassessed our presumption connected ADP and proceed to beryllium assured successful the company’s presumption going forward."

Morgan Stanley Revises Automatic Data Processing (ADP) Target Lower Following Earnings Re-Rating

Automatic Data Processing, Inc. (NASDAQ:ADP) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 67 hedge money portfolios held Automatic Data Processing, Inc. (NASDAQ:ADP) astatine the extremity of the archetypal quarter, which was 68 successful the erstwhile quarter. While we admit the hazard and imaginable of Automatic Data Processing, Inc. (NASDAQ:ADP) arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and doing truthful wrong a shorter clip frame. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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