Many companies have felt the impact of the COVID-19 pandemic in 2020, and dividend champion Automatic Data Processing (ADP) has been no exception. Despite the company managing a top and bottom line beat when it concluded its 2020 fiscal year last month, the stock's share price remains below pre-COVID-19 levels. While the depressed share price may seem like a buying opportunity, the impact of COVID-19 will be more strongly felt in FY2021. Earnings are forecasted to be drastically lower, and it doesn't look like this is quite fully priced into the stock. We will verify ADP's fundamental strength, and outline what an attractive entry point might look like.

Automatic Data Processing is a company that provides various human resource products and services to employers all over the world. It was widely expected that a surge in unemployment thanks to shutdowns (in an effort to minimize the spread of the virus) would have a devastating impact on a company such as ADP.

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