Automatic Data Processing investors came into this report sitting on a smooth run, with the stock up over the past month, only to see the share price drop about 3.5% on the day. That pullback jars with a headline earnings story built on profit strength. Adjusted earnings per share for the quarter and year moved ahead, and net profit margin for the last 12 months stood at about 20.1%. The market is reacting to a rich valuation and slower projected growth. The core question now is whether that one day of selling really fits the full earnings picture.

Is Automatic Data Processing still priced for steady growth, or has sentiment pushed the stock beyond what recent earnings and margins support? Compare today’s share price to the underlying…