FactSet (FDS - Analyst Report) is enhancing its financial and analytics database with the Fitch solution. It has been incorporated in its entire suite of Credit risk management solution, which would allow them to conduct credit risk analysis of their portfolios.
This would be of help to the FactSet customers, as the existing and new subscribers will have access to the FactSet database of Fitch Ratings' complete global coverage, such as Sovereigns, Public Finance, Corporate Finance, Financial Institutions and the Structured Finance modules.
FactSet management made a recent disclosure that it is witnessing improving spending trends, as end customers of financial database products appear to be replacing Bloomberg workstations with FactSet terminals.
FactSet continues to launch new products and applications across its segments with special emphasis on financial services to gain more customers.
With new solutions in its portfolio, the number of clients of the company increased which positively affected the company’s revenues. The company witnessed revenue growth in most of its business segments in the last reported quarter.
The company operates in highly competitive markets and it faces considerable competition in the financial market data, analytics and related services. We expect competition to intensify further, going forward. Some competitors such as Bloomberg L.P., Dow Jones & Company Inc., MSCI Inc. (MSCI - Snapshot Report) and Thomson Reuters are also coming up with substitute products at competitive prices.
FactSet is offering new products and services on a regular basis. However, adding new customers is still a challenge due to the sluggish European market, which has led to a slowdown in business.
FactSet carries a Zacks Rank #2 (Buy).
Investors can consider other stocks in the technology space such as, Lifelock Inc. (LOCK - Snapshot Report) and Nielsel Holdings (NLSN - Analyst Report) both carrying a Zacks Rank #2 (Buy).