David Moenning

About the Author David Moenning

David Moenning is a the Chief Investment Officer at Heritage Capital, which focuses on active risk management of the U.S. stock market. Dave is also the proprietor of StateoftheMarkets.com, which provides free and subscription-based portfolio services. Dave began his investment career in 1980 and has been an independent money manager since 1987. Thus, Dave has been live on the firing line and investing for a living for more than 25 years.

Chart of the Day: Automatic Data Processing Inc, 3/19/15


By Donald Moenning

Every trading day, we search our database for a stock that, in our humble opinion, is in solid technical condition and features a chart indicating the stock is ready to move higher.

Our base level investment philosophy is based on the concept of “own the best and ignore the rest.” Thus, we focus our attention solely on the top ranked stocks in the strongest industry groups.

How Do We Find the “Top Rated Stocks?”

A question we are constantly asked is: How do we find these top-rated stocks? In short, we follow a disciplined three-step process.

Step 1: Identify the Top Sectors and Industry Groups 

We first determine the market’s leadership by identifying the top performing sectors and industry groups. From 10 sectors and more than 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation’s leading independent research firm) identifies the top 5 sectors and the top 20 groups based on momentum, industry strength, and indicators that are specific to the industry being ranked.
 
Step 2: Isolate the Highest Rated Companies 
From more than 2400 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.
 
Step 3: Select the Strongest Stocks in the Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps us focused on the best performing stocks in the leading sectors of the market.

And then every weekend, we rerun the ratings and start all over again!

 

The Chart of the Day

The chart listed below has met all of our fundamental criteria and currently displays a solid technical “set up” for a buy. The stocks highlighted in our daily chart reports are definitely on our radar, and may even be in some of our portfolios (see disclosure for details). Just to be clear, we are by no means recommending you buy this stock. However, we believe it is important to identify positive technical set-ups when looking for stocks, thus we consider this report a valuable tool for stock-pickers.

 

 

Stock Symbol Industry Rating YTD % Gain Stop Loss
Automatic Data Processing Inc ADP Data Processing & Outsourced Services 8.5 +4.77% $84.98

Company Profile:

Automatic Data Processing (NASDAQ:ADP) is a provider of human capital management solutions to employers and computing solutions to vehicle dealers. ADP operates through three business segments: Employer Services, Professional Employer Organization (PEO) Services and Dealer Services. Employer Services offers a range of business outsourcing and HCM solutions, including: Payroll Services, Benefits Administration, Talent Management, Human Resources Management, Time and Attendance Management, Insurance Services, Retirement Services and Tax, Compliance and Payment Solutions. ADP’s PEO business, called ADP TotalSource, integrates HR management and employee benefits functions, including HR administration, employee benefits, and employer liability management. Dealer Services provide dealer management systems, digital marketing/advertising solutions and other business management solutions.

 

Stock Rating:
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

 

Disclosure:
At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

 

Automatic Data Processing Inc – Last 3 Months

 

Automatic Data Processing Inc – Last 12 Months

 

Automatic Data Processing Inc – Last 5 Years