We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Hold FactSet (FDS) Stock Now
Read MoreHide Full Article
FactSet Research Systems Inc. (FDS - Free Report) has made a remarkable run in the last six months. The stock has returned 32.3% during the said time frame, significantly outperforming the industry's gain of 14.2%.
With expected long-term earnings per share growth rate of 11% and a market cap of $8.2 billion seems to be a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s delve deeper to look at the factors influencing the company’s performance.
FactSet, a provider of global online integrated data-related products and services for the investment community regularly enhances product portfolio to address the requirements of the industry it caters to.
Additionally, its strategy of expanding through acquisitions is praiseworthy. The company’s most noticeable acquisitions include the buyout of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC, StreetAccount, to name some.
We believe, the enrichment of the offerings via innovations and acquisitions has assisted the company in expanding clientele as well as global footprint. The addition of 65 clients in first-quarter fiscal 2018 which took the tally to 4809 is a testament to the fact. The company’s Annual Subscription Value (“ASV”) increased to $1.32 billion as of Nov 30, 2017, up 12.8% from the year-ago quarter figure of $1.17 billion.
However, a declining client retention ratio is a major concern. The company’s client retention ratio in the first quarter was 90%, tanking 300 basis points (bps) from the year-ago quarter and 100 bps from the previous quarter. This remain a concern over the company’s top-line growth in near-term.
Additionally, the industry being a highly competitive one with the likes of players such as Bloomberg L.P., Thomson Reuters Inc. and S&P Global Inc. (SPGI - Free Report) , FactSet continues to face strong headwinds.
Long-term expected EPS growth rate for IHS Markit is projected to be 11.64% and 4.50%, respectively.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Image: Bigstock
Here's Why Investors Should Hold FactSet (FDS) Stock Now
FactSet Research Systems Inc. (FDS - Free Report) has made a remarkable run in the last six months. The stock has returned 32.3% during the said time frame, significantly outperforming the industry's gain of 14.2%.
With expected long-term earnings per share growth rate of 11% and a market cap of $8.2 billion seems to be a stock that investors need to hold on to if they are looking to reap long-term gains.
Let’s delve deeper to look at the factors influencing the company’s performance.
FactSet, a provider of global online integrated data-related products and services for the investment community regularly enhances product portfolio to address the requirements of the industry it caters to.
Additionally, its strategy of expanding through acquisitions is praiseworthy. The company’s most noticeable acquisitions include the buyout of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC, StreetAccount, to name some.
We believe, the enrichment of the offerings via innovations and acquisitions has assisted the company in expanding clientele as well as global footprint. The addition of 65 clients in first-quarter fiscal 2018 which took the tally to 4809 is a testament to the fact. The company’s Annual Subscription Value (“ASV”) increased to $1.32 billion as of Nov 30, 2017, up 12.8% from the year-ago quarter figure of $1.17 billion.
However, a declining client retention ratio is a major concern. The company’s client retention ratio in the first quarter was 90%, tanking 300 basis points (bps) from the year-ago quarter and 100 bps from the previous quarter. This remain a concern over the company’s top-line growth in near-term.
Additionally, the industry being a highly competitive one with the likes of players such as Bloomberg L.P., Thomson Reuters Inc. and S&P Global Inc. (SPGI - Free Report) , FactSet continues to face strong headwinds.
Zacks Rank and Stocks to Consider
FactSet carries a Zacks Rank #3 (Hold).
Some of the better-ranked stocks in the same industry space are IHS Markit Ltd. and Dun & Bradstreet Corporation (DNB - Free Report) both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS growth rate for IHS Markit is projected to be 11.64% and 4.50%, respectively.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks >>