Automatic Data Processing, Inc. engages in the provision of cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR management, and tax compliance administration; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Vantage HCM, a solution for HR management, benefits administration, payroll services, time and attendance management, and talent management. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Automatic Data Processing, Inc.

Pre-markets are keeping the pedal mostly to the metal this morning, with most of the major market indexes higher again following record closing highs Monday afternoon. The Dow is +220 points, the S&P 500 is +7 and the Nasdaq +41. Only the small-cap Russell 2000 is lower at this hour, by -7 points.
A new Fed Survey out this morning lays out what market participants have already been trading on — up between +4.5% and +6.5% from October 11 lows, depending on the index — with a +92% chance of a 25 basis-point (bps) rate cut at the conclusion of the FOMC meeting tomorrow, another 25 bps cut at the December meeting, and — this is new — possibly another cut in January. By the end of 2026, the survey expects to see the Fed funds rate between 3.00-3.25%, -100 bps from where we are currently.
As far as he government shutdown is concerned, neatly everyone believes it will be over by the end of this month or sometime in November. Almost no one says it will go into the new year. Currently, at 28 days, it is the second longest government shutdown, behind only the 35 days during holiday season of 2018-19, regarding funding for the border wall with Mexico.
There is also a preliminary report out this morning from Automatic Data Processing ADP this morning, which averages out private-sector job creation on a four-week basis. Inspired partly by the ongoing government shutdown, this is the preliminary average’s maiden voyage:
Ending the week of October 11, the four-week average in private-sector job growth is +14K — still paltry, but a meaningful improvement over a negative September average. This suggests that at next week’s monthly ADP report we’ll see private-sector jobs gains at +55K. ADP will now release these numbers with a two-week lag each Tuesday, with the possible exception of the week in which monthly ADP data is released.
Case-Shiller Home Prices Fall in 19 of 20 Cities
New August data for Case-Shiller Home Prices (these numbers, while aggressively in arrears, are routinely cited as the most accurate in the housing industry) showed +1.5% price growth year over year overall, even as prices fell month over month in 19 of 20 cities. Year over year, the 10-City composite was +2.1% (down 20 bps month over month) and the 20-City reached +1.6% (from +1.8%). Year-over-year price gains were biggest in New York City and Chicago, deepest cuts were in Tampa and San Francisco.
Biggest Earnings Surprises Ahead of the Open: UPS, VFC, PYPL
UPS UPS shares are up +12% on this morning’s big +32% earnings beat, with +2.8% growth on the company’s top line. The “turnaround plan” for the delivery and logistics giant looks to be in place. Shares are still down double-digits year to date on rough terrain regarding U.S. tariff policy.
V.F. Corp. VFC also shows signs of a turnaround, with a +23.8% earnings beat in its fiscal Q2, on +2.8% revenue growth in the quarter. Beyond tariff issues, the Vans-North Face-Timberland parent has seen a weakened market over the past two years. Shares are up +3% in the pre-market.
PayPal PYPL posted a +12.6% positive earnings surprise this morning on its bottom line in Q3, with a +2% beat on quarterly sales. Sweetening this news was the unveiling of a strategic partnership with OpenAI (although who doesn’t have one of these by now? ;) ). Shares were up double-digits on the news.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Fed's FOMC Meeting in Focus

Tuesday, October 28, 2025
Pre-markets are keeping the pedal mostly to the metal this morning, with most of the major market indexes higher again following record closing highs Monday afternoon. The Dow is +220 points, the S&P 500 is +7 and the Nasdaq +41. Only the small-cap Russell 2000 is lower at this hour, by -7 points.
A new Fed Survey out this morning lays out what market participants have already been trading on — up between +4.5% and +6.5% from October 11 lows, depending on the index — with a +92% chance of a 25 basis-point (bps) rate cut at the conclusion of the FOMC meeting tomorrow, another 25 bps cut at the December meeting, and — this is new — possibly another cut in January. By the end of 2026, the survey expects to see the Fed funds rate between 3.00-3.25%, -100 bps from where we are currently.
As far as he government shutdown is concerned, neatly everyone believes it will be over by the end of this month or sometime in November. Almost no one says it will go into the new year. Currently, at 28 days, it is the second longest government shutdown, behind only the 35 days during holiday season of 2018-19, regarding funding for the border wall with Mexico.
There is also a preliminary report out this morning from Automatic Data Processing ADP this morning, which averages out private-sector job creation on a four-week basis. Inspired partly by the ongoing government shutdown, this is the preliminary average’s maiden voyage:
Ending the week of October 11, the four-week average in private-sector job growth is +14K — still paltry, but a meaningful improvement over a negative September average. This suggests that at next week’s monthly ADP report we’ll see private-sector jobs gains at +55K. ADP will now release these numbers with a two-week lag each Tuesday, with the possible exception of the week in which monthly ADP data is released.
Case-Shiller Home Prices Fall in 19 of 20 Cities
New August data for Case-Shiller Home Prices (these numbers, while aggressively in arrears, are routinely cited as the most accurate in the housing industry) showed +1.5% price growth year over year overall, even as prices fell month over month in 19 of 20 cities. Year over year, the 10-City composite was +2.1% (down 20 bps month over month) and the 20-City reached +1.6% (from +1.8%). Year-over-year price gains were biggest in New York City and Chicago, deepest cuts were in Tampa and San Francisco.
Biggest Earnings Surprises Ahead of the Open: UPS, VFC, PYPL
UPS UPS shares are up +12% on this morning’s big +32% earnings beat, with +2.8% growth on the company’s top line. The “turnaround plan” for the delivery and logistics giant looks to be in place. Shares are still down double-digits year to date on rough terrain regarding U.S. tariff policy. For more on UPS’ earnings, click here.
V.F. Corp. VFC also shows signs of a turnaround, with a +23.8% earnings beat in its fiscal Q2, on +2.8% revenue growth in the quarter. Beyond tariff issues, the Vans-North Face-Timberland parent has seen a weakened market over the past two years. Shares are up +3% in the pre-market. For more on VFC’s earnings, click here.
PayPal PYPL posted a +12.6% positive earnings surprise this morning on its bottom line in Q3, with a +2% beat on quarterly sales. Sweetening this news was the unveiling of a strategic partnership with OpenAI (although who doesn’t have one of these by now? ;) ). Shares were up double-digits on the news. For more on PYPL’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
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Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
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V.F. Corporation (VFC) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prelim Jobs, Fed Data Join Q3 Earnings Beats: Pre-markets Up

ADP ADP is scheduled to release first-quarter fiscal 2026 results on Oct. 29, before market open.
ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 3.7%.
Automatic Data Processing, Inc. Price and EPS Surprise
ADP’s Q1 Expectations
The Zacks Consensus Estimate for the top line is pegged at $5.1 billion, hinting at 6.1% year-over-year growth.
We expect first-quarter fiscal 2026 revenues of $3.4 billion from Employer Services, suggesting 5% growth from the year-ago quarter’s actual. Robust pipeline and business bookings growth is anticipated to have improved this segment’s revenues.
Our estimate for Professional Employer Organization (“PEO”) services’ revenues is $1.7 billion, hinting at 7.3% year-over-year growth. Continued strong PEO business bookings growth, accompanied by higher retention, is expected to have improved this segment.
We estimate Interest on Funds held for clients at $294.4 million, indicating a 16.3% rise from the year-ago quarter’s reported figure.
Our projection for Average Paid PEO Worksite Employees for the quarter is 759. Changes in Pay per control are anticipated to be 1% for the to-be-reported quarter.
The consensus estimate for earnings per share is pinned at $2.44, indicating year-over-year growth of 4.7%. Strong margins are expected to have enhanced the bottom line.
What Our Model Says About ADP
Our proven model does not conclusively predict an earnings beat for Automatic Data Processing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +1.80% and a Zacks Rank of 4 (Sell) at present.
Stocks to Consider
Here are a few stocks from the broader Computer And Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Western Digital WDC: The Zacks Consensus Estimate for the company’s first-quarter fiscal 2026 revenues is pinned at $2.7 billion, indicating a 34% year-over-year decline. For earnings, the consensus mark is set at $1.58 per share, implying a 11.2% decline from the year-ago quarter’s actual. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 6.8%.
WDC has an Earnings ESP of +1.11% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare its first-quarter fiscal 2026 results on Oct. 30.
Seagate Technology STX: The Zacks Consensus Estimate for the company’s first-quarter fiscal 2026 revenues is pegged at $2.5 billion, indicating a year-over-year upsurge of 16.7%. For earnings, the consensus mark is pegged at $2.36 per share, suggesting 49.4% growth from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 7%.
STX currently has an Earnings ESP of +2.54% and a Zacks Rank #2. The company is scheduled to declare first-quarter fiscal 2026 results on Oct. 28.
Zacks Names #1 Semiconductor Stock
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ADP to Report Q1 Earnings: Here's What Investors Should Know

Wall Street analysts expect Automatic Data Processing (ADP) to post quarterly earnings of $2.44 per share in its upcoming report, which indicates a year-over-year increase of 4.7%. Revenues are expected to be $5.13 billion, up 6.1% from the year-ago quarter.
The current level reflects a downward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain ADP metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Segment revenues- Employer Services' stands at $3.45 billion. The estimate indicates a year-over-year change of +5.7%.
The collective assessment of analysts points to an estimated 'Revenues- Interest on funds held for clients' of $281.99 million. The estimate indicates a year-over-year change of +11.3%.
Analysts predict that the 'Revenues- PEO revenues' will reach $1.67 billion. The estimate indicates a year-over-year change of +6.3%.
Analysts forecast 'Segment revenues- PEO Services' to reach $1.68 billion. The estimate indicates a year-over-year change of +6.7%.
Based on the collective assessment of analysts, 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' should arrive at $3.17 billion. The estimate indicates a year-over-year change of +5.3%.
Analysts' assessment points toward 'Average paid PEO worksite employees during the period' reaching 757 . The estimate is in contrast to the year-ago figure of 737 .
View all Key Company Metrics for ADP here>>>
ADP shares have witnessed a change of -2.5% in the past month, in contrast to the Zacks S&P 500 composite's +1.3% move. With a Zacks Rank #4 (Sell), ADP is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Seeking Clues to ADP (ADP) Q1 Earnings? A Peek Into Wall Street Projections for Key Metrics

Investors in Automatic Data Processing Inc. (Symbol: ADP) saw new options become available today, for the December 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ADP options chain for the new December 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $280.00 strike price has a current bid of $5.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $280.00, but will also collect the premium, putting the cost basis of the shares at $275.00 (before broker commissions). To an investor already interested in purchasing shares of ADP, that could represent an attractive alternative to paying $281.83/share today.
Because the $280.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.79% return on the cash commitment, or 15.14% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Automatic Data Processing Inc., and highlighting in green where the $280.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $285.00 strike price has a current bid of $6.50. If an investor was to purchase shares of ADP stock at the current price level of $281.83/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $285.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.43% if the stock gets called away at the December 5th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ADP shares really soar, which is why looking at the trailing twelve month trading history for Automatic Data Processing Inc., as well as studying the business fundamentals becomes important. Below is a chart showing ADP's trailing twelve month trading history, with the $285.00 strike highlighted in red:
Considering the fact that the $285.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 52%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.31% boost of extra return to the investor, or 19.56% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 22%, while the implied volatility in the call contract example is 24%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $281.83) to be 19%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting ADP Put And Call Options For December 5th

ADP ADP reported impressive fourth-quarter fiscal 2025 results. ADP’s earnings per share of $2.26 beat the consensus estimate by 1.8% and increased 8.1% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.5% and grew 5.7% on a year-over-year basis.
How Is ADP Faring?
ADP’s three-tier business strategy sustains and enhances its strong position as a human capital management (HCM) technology and services provider. The company delivers a complete suite of cloud-based HCM and HR Outsourcing (HRO) solutions. It is widening its global HCM and HRO businesses with established local, in-country software solutions and cloud-based multi-country solutions.
The company has boosted DataCloud penetration and hiked investment in inside sales, mid-market migrations and service alignment initiatives, leveraging its ongoing transformation initiatives. ADP continues to innovate, boost operations, expand margins and bolster forward-thinking through these initiatives.
In fiscal 2025, 2024, 2023, 2022 and 2021, the company paid out $2.4 billion, $2.2 billion, $1.9 billion, $1.7 billion and $1.6 billion in dividends, respectively. Such moves indicate the company’s commitment to return value to shareholders and underline its confidence in business. We are optimistic about ADP’s ability to preserve steady income growth, translating to steady cash flow, enabling the company to pay out stable dividends.
ADP's current ratio (a measure of liquidity) at the end of the fourth-quarter fiscal 2025 was 1.05, higher than the preceding quarter’s 1.02 and the year-ago quarter’s 1.01. Alongside this consistent improvement, a current ratio of more than 1 often indicates that the company will cover short-term obligations easily.
Meanwhile, the company has recorded a notable uptick in its expenditure due to ongoing acquisitions and investments in its transformation projects. Specifically, in fiscal 2025 and 2024, it increased 6.8% and 6.2%, respectively. The same had increased 8% and 10% in fiscal 2023 and 2022, respectively. A persistent increase in expenses will continue to exert pressure on ADP's bottom-line performance in the long run.
The company faces significant competition in each of its product lines. Both its Employer Services and PEO Services segments compete with other independent business outsourcing companies in most of their operating regions. Furthermore, ADP has witnessed some negative impact on its retention rate, resulting in heightened competition and migration from the legacy business.
Earnings Snapshot
Paychex, Inc. PAYX reported impressive first-quarter fiscal 2026 results.
PAYX’s fiscal first-quarter earnings of $1.22 per share beat the Zacks Consensus Estimate by a slight margin and increased 5.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 16.8% from the year-ago quarter.
Accenture plc ACN posted impressive fourth-quarter fiscal 2025 results.
ACN’s earnings were $3.03 per share, beating the Zacks Consensus Estimate by 1.7%. The metric increased 8.6% from the year-ago quarter. Total revenues of $17.6 billion beat the consensus estimate by 1.6% and rose 7.3% on a year-over-year basis.
#1 Semiconductor Stock to Buy (Not NVDA)
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One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ADP Benefits From Three-Tier Business Strategy Amid Low Liquidity

Key Points
Bitcoin ETFs have fueled investor interest in the digital token.
XRP is no longer under government scrutiny as it once was, and financial firms could launch XRP ETFs very soon.
Bitcoin has had consistent demand among investors, but keep in mind that it's still a very volatile investment.
The value of many cryptocurrencies has soared over the past year, as the government takes a more hands-off approach to this market and as investors have expanded their appetite for riskier investments.
Bitcoin (CRYPTO: BTC) and XRP (Ripple) (CRYPTO: XRP) have come along for the ride, with Bitcoin's value rising 83% and XRP gaining 390% over the past year. If you're trying to decide between the two, here are a few things to consider -- and why you should be cautious about putting too much money into any cryptocurrency right now.
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Why Bitcoin has surged
There are a few factors that drove Bitcoin's price higher over the past year, most notably the launch of exchange-traded funds (ETFs) last year that make it easy for people to invest Bitcoin. These funds own the Bitcoin and then sell shares of the cryptocurrency fund to investors, making crypto ownership as easy as buying stocks.
Since their launch, Bitcoin ETFs have accumulated more than $150 billion of assets under management (AUM), showing that demand is high for Bitcoin ownership.
Secondly, macroeconomic uncertainty has likely helped boost Bitcoin's value. The cryptocurrency is viewed by some investors as digital gold, in the sense that it's a safe place to put money when the economy is uncertain. The job market is showing signs of slowing down -- ADP data showed a loss of 3,000 jobs in August and a decline of 32,000 in September -- in addition to ongoing concerns about how tariffs will affect the economy.
What's more, the Federal Reserve recently cut interest rates, and economists are expecting more cuts before the end of the year. Rate cuts often encourage investors to put money into riskier investments like cryptocurrencies, which may also be helping to fuel Bitcoin's rise.
Why XRP gained significant momentum
One of the main reasons why XRP has risen over the past year is that the government has taken a lighter regulatory touch toward crypto. XRP perhaps has benefited more than other cryptocurrencies because the SEC recently dropped a lawsuit against Ripple Labs, the maker of the XRP coin.
The lawsuit, which began back in 2020 under President Trump's first term, stated that Ripple was selling unregulated securities. But with the Trump administration shifting its stance toward cryptocurrencies (Trump, oddly, has his own meme coin), the SEC has dropped the lawsuit, though Ripple had to pay a $125 million fine.
That positive news has been a boost to XRP, and it comes at the same time that XRP ETFs could soon launch. The SEC is in the process of approving the ETF applications for XRP funds from financial firms, and they could be approved as soon as this month. It's worth noting that the current government shutdown could delay any potential approval.
If the XRP ETFs are approved, it could give further credibility to the coin, making it just one of three (the other being Bitcoin and Ethereum) approved spot cryptocurrency ETFs. This could mean billions of dollars are invested into the new funds.
Bitcoin is the better crypto buy, but be cautious
Between these two leading cryptocurrencies, I think Bitcoin is the better one to own right now. The coin's relatively longer history (15 years of existence is much longer than most cryptos, 2 years longer than XRP's story) has shown that, over time, Bitcoin tends to remain in demand among investors.
The coin has experienced some very significant boom-and-bust cycles, and yet it's always rallied back afterwards. That's no guarantee its value will go up over time, but it does indicate that there are enough investors interested in it that it's been able regain its momentum in the past.
XRP doesn't have quite the same long history, and the recent interest in the coin is exactly that: recent interest. XRP ETFs could push the coin's value higher, but to what degree and whether it's a sustainable catalyst is unknown.
Which leads me to one caveat before buying Bitcoin right now: Expectations for its growth are sky high. Investors of cryptocurrencies and stocks alike appear to have a very optimistic view of their investments right now, and it may be driving values of equities and digital coins higher than warranted.
That doesn't mean buying Bitcoin right now is a mistake. Still, if you're just starting a position, it's worth remembering that the digital coin often experiences significant price swings. Any significant shift in the crypto market could pour cold water on Bitcoin's value in the short term.
Should you invest $1,000 in Bitcoin right now?
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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Better Crypto Buy: Bitcoin vs. XRP

Fintech companies, which digitize financial transactions with apps and cloud-based services, are often considered high-growth investments. The global fintech market could still expand at a compound annual growth rate (CAGR) of 16.2% from 2025 to 2032, according to Fortune Business Insights, as more customers pivot away from traditional financial institutions.
But over the past few years, many fintech stocks struggled as inflation curbed consumer spending, rising interest rates throttled new loans, and investors rotated toward more conservative investments. Some of those stocks bounced back as interest rates declined again, but a lot of them are still trading well below their all-time highs.
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Two of those stocks are Robinhood (NASDAQ: HOOD) and SoFi Technologies (NASDAQ: SOFI), which trade 22% and 49%, respectively, below their record closing prices. But if you can tune out the near-term noise, both of these high-growth fintech companies might be great stocks for long-term investors.
Robinhood
Robinhood, which went public in 2021, drew in a lot of retail investors with its commission-free stock, options, and crypto trading services. From 2021 to 2024, its number of year-end funded accounts grew from 22.7 million to 25.2 million, its assets under custody rose from $98 billion to $193 billion, and its annual revenue increased from $1.82 billion to $2.95 billion.
Robinhood's growth stalled out in 2022 as rising interest rates chilled the crypto market and curbed the market's appetite for volatile and speculative stocks. But its business recovered as interest rates declined, investors pivoted back toward riskier plays, and it expanded its ecosystem with its Cash Card, digital payment services, and subscription-based Gold tier.
From 2024 to 2027, analysts expect Robinhood's revenue to grow at a CAGR of 15% as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increase at a CAGR of 19%. With an enterprise value of $51.4 billion, Robinhood still looks reasonably valued at 28 times this year's adjusted EBITDA.
Robinhood's near-term growth will remain volatile, but it could continue to lock in younger and first-time investors with its commission-free trades and streamlined app. That makes it a good long-term fintech play if you expect its gamified trading platform to keep disrupting traditional brokerages.
SoFi Technologies
SoFi, which went public by merging with a special purpose acquisition company (SPAC) in 2021, aspires to be a one-stop shop for financial services. It started out by providing student loans, and it subsequently rolled out mortgages, auto loans, personal loans, credit cards, insurance services, estate planning, and stock trading tools. In 2022, it launched a digital-only direct bank after it obtained a U.S. bank charter.
From 2021 to 2024, SoFi's number of year-end members quadrupled from 2.5 million to 10.1 million, its total number of products in use jumped from 1.9 million to 14.7 million, and its annual revenue jumped from $1.01 billion to $2.61 billion. Its digital-only approach drove it to grow at a much faster rate than its brick-and-mortar peers. Its fintech subsidiary Galileo, which provides payment processing and card issuing services, serves nearly 160 million accounts on its own.
That growth trajectory is impressive, but a temporary freeze on student loan payments (from 2020 to 2023) and higher interest rates spooked its investors. But those headwinds are dissipating now that student loan payments have resumed and interest rates are declining.
From 2024 to 2027, analysts expect SoFi's revenue and adjusted EBITDA to rise at a CAGR of 20% and 32%, respectively. With an enterprise value of $13.5 billion, it looks cheap at just 15 times this year's adjusted EBITDA. So if you believe SoFi will keep drawing more customers away from traditional banks, it might be a great long-term investment right now.
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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Brilliant Fintech Stocks to Buy Now and Hold for the Long Term

Monday, October 13, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), Eli Lilly and Co. (LLY) and Visa Inc. (V). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Filling Gaps to Start New Trading Week
Today's Featured Research Reports
Apple’s shares have outperformed the Zacks Computer - Micro Computers industry over the past year (+7.2% vs. +6.6%). The company is benefiting from strong growth in Services revenues. AAPL now has more than 1 billion paid subscribers across its Services portfolio. Both paid accounts and paid subscriptions grew double digits year over year in third-quarter fiscal 2025.
Apple TV+ viewership soared double-digit year over year. Expanding capabilities of AI Intelligence is noteworthy. Apple expects the September quarter’s (fourth-quarter fiscal 2025) net sales to grow mid to high single digits on a year-over-year basis. AAPL expects the Services year-over-year growth rate to be similar to that of the June quarter.
However, gross margin is expected to be 46-47% in the fourth quarter of fiscal 2025, including a tariff impact of $1.1 billion. Increasing regulatory headwinds and tariffs are a concern for investors.
(You can read the full research report on Apple here >>>)
Shares of Eli Lilly have gained +7.8% over the year-to-date period against the Zacks Large Cap Pharmaceuticals industry’s gain of +8.5%. Demand for the company’s popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers. Launches of these drugs in new international markets and improved U.S. supply from ramped-up production led to strong sales in the first half of 2025. Lilly’s other new drugs, like Kisunla, Omvoh and Jaypirca, are also contributing to its top-line growth.
However, data from phase III studies on its weight-loss pill, orforglipron, was mixed. Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds. Estimates have declined slightly ahead of Q3 results. Lilly has a mixed record of earnings surprises in recent quarters.
(You can read the full research report on Eli Lilly here >>>)
Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+10.2% vs. -6%). The company’s strong market position is underpinned by consistent volume-driven growth, acquisitions and technological leadership in digital payments. Expansion in cross-border volumes, rising transactions and investments in AI and stablecoin infrastructure enhance its future prospects.
A robust financial position with ample liquidity and shareholder returns further supports long-term growth. However, it faces rising client incentives and expenses, which can weigh on margins. Regulatory pressures and potential legislative changes pose additional risks to its fee structure.
While declining cash volumes align with its digital strategy, regional softness warrants monitoring. Moreover, Visa’s premium valuation suggests limited near-term upside. As such, the stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), TotalEnergies SE (TTE) and Automatic Data Processing, Inc. (ADP).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Keytruda Drives Merck (MRK) Sales Amid Gardasil Issues
Keytruda and new products have been driving Merck's sales. However, the Zacks analyst is concerned about declining sales of Gardasil and Keytruda's upcoming loss of exclusivity in 2028.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies' presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Transformation Initiatives Aid ADP, Escalating Expenses Hurt
The Zacks analyst is positive about ADP's transformation initiatives that are helping the company to innovate, improve operations and expand margins. Rising expenses remain a concern.
Ubiquiti (UI) Rides on Healthy Demand, Product Innovation
Per the Zacks analyst, growing deployment of IoT devices across industries will likely drive Ubiquiti's prospects. Strong focus on innovation is a positive.
Strong Demand And Bookings Boost Carnival's (CCL) Prospects
Per the Zacks analyst, Carnival benefits from strong demand, increased booking volumes, and the destination strategy. Also, strong onboard revenue trends bode well.
Inside Sales Surge Fuels Casey's (CASY) Q1 Momentum
Per the Zacks analyst, Casey's posted solid Q1 results with a 14.2% rise in inside sales, driven by strong demand for prepared foods, bakery items, and beverages across its store network.
Restructuring Drives Solventum's (SOLV) Path to Margin Expansion
Per the Zacks analyst, Solventum's 3-phase restructuring, margin-focused plans, and $120M in savings are strengthening efficiency. The company is positioned for steady growth amid lingering headwinds
New Upgrades
Solid Data Center Demand & Expansions to Aid Equinix (EQIX)
Per the Zacks analyst, the solid demand for interconnected data center infrastructure, recurring revenue model and strategic expansions are likely to benefit Equinix.
Rising Revenues & Extensive Branch Network Aid Itau Unibanco (ITUB)
Per the Zacks analyst, steady revenue growth, along with its extensive branch network, strategic acquisitions, and technological investments, strengthens Itau Unibanco's top-line growth.
Rising Demand for ADAS & Increase in EyeQ Shipment Aid Mobileye (MBLY)
Per the Zacks analyst, the rising demand for ADAS and autonomous driving features is fueling Mobileye's prospects. The expected increase in EyeQ shipments also bolsters prospects.
New Downgrades
Drilling Activity-Slowdown to Ail SM Energy's (SM) Output
The Zacks analyst is concerned because the drop in drilling activities may cast a shadow over SM Energy's production outlook.
Higher Spending Amid Subscriber Decline Hurts Tegna (TGNA)
Per the Zacks analyst, declining subscriber growth is compelling Tegna to spend on higher programming fees and investments thereby keeping margins under pressure.
PACCAR (PCAR) Faces Global Truck Demand Slowdown & Margin Squeeze
PACCAR is seeing weaker truck demand across North America, Europe, and South America. Declining volumes and truck margin contraction make the Zacks analyst bearish on the stock.
Radical New Technology Could Hand Investors Huge Gains
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Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Apple, Eli Lilly & Visa

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the The Industrial Select Sector SPDR Fund ETF (Symbol: XLI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $167.19 per unit.
With XLI trading at a recent price near $149.91 per unit, that means that analysts see 11.52% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XLI's underlying holdings with notable upside to their analyst target prices are Parker Hannifin Corp (Symbol: PH), J.B. Hunt Transport Services, Inc. (Symbol: JBHT), and Automatic Data Processing Inc. (Symbol: ADP). Although PH has traded at a recent price of $716.66/share, the average analyst target is 11.91% higher at $802.05/share. Similarly, JBHT has 11.91% upside from the recent share price of $137.09 if the average analyst target price of $153.42/share is reached, and analysts on average are expecting ADP to reach a target price of $318.54/share, which is 11.69% above the recent price of $285.19. Below is a twelve month price history chart comparing the stock performance of PH, JBHT, and ADP:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
The Industrial Select Sector SPDR Fund ETF
XLI
$149.91
$167.19
11.52%
Parker Hannifin Corp
PH
$716.66
$802.05
11.91%
J.B. Hunt Transport Services, Inc.
JBHT
$137.09
$153.42
11.91%
Automatic Data Processing Inc.
ADP
$285.19
$318.54
11.69%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Automatic Data Processing, Inc.

Price history and volume

Shares 360

Investment risk — high

Investment potential — medium

AI Factors

stagflation

Cloud Computing

Labor Supply

Recession Risk

Inflation

Labor Costs

Generative AI

UK Economy

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