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Here's Why Investors Should Hold FactSet (FDS) Stock Now
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A prudent investment decision involves buying stocks that have solid prospects and selling those that carry risks. At times, it is rational to hold certain stocks that have enough potential but are weighed down by tough market conditions.
Here we discuss about FactSet Research Systems Inc. (FDS - Free Report) , a company that has an expected long-term earnings per share growth rate of 12.6%. Moreover, its earnings are expected to register 16.8% and 12.3% growth in fiscal 2018 and 2019, respectively.
In a year’s time, shares of FactSet have gained 25.7%, outperforming the S&P 500 Composite’s 14.8% rise.
We believe that stock has the potential to run further on the bourse and reasons behind our optimism include the company’s solid organic and inorganic growth.
FactSet Continues to Grow Organically
Currently, the company is witnessing sales growth across content and technology solutions (CTS) as well as analytics products and wealth management solutions. In the quarters ahead, FactSet’s proprietary content revenues are expected to gain momentum on strong demand driven by the company's competitive pricing strategy. We believe that its growing customer base, solid revenue growth coupled with high client retention rate and a competitive pricing strategy will positively impact FactSet’s results over the long term.
Additionally, FactSet is highly optimistic about the integrated data-related products and services within its analytical suite, which it offers to the investment community. With the market adapting a quantitative approach to save time, reduce operating expenses and increase work efficiency, the company’s innovative analytical product suite should benifit.
To this end, FactSet’s recent launch of Open: FactSet Marketplace looks promising. It is a new online platform that offers core financial and alternative datasets to address the increasing demand for integrated data. The company believes that this new platform will boost its CTS suite next year.
Over the years, FactSet has made several acquisitions to expedite growth. The buyouts of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC and StreetAccount are most noteworthy. These acquisitions are expected to broaden the company’s product suite, thereby delivering innovative products and helping it evolve as a global financial database company. They also help FactSet to maximize value for its partners and provide customers with exclusive content sets. Notably, the acquisitions of BISAM and IDMS have increased the company’s international footprint, particularly in Europe.
The long-term expected earnings per share growth rate for Blucora, IQVIA Holdings and Paychex is 20%, 11.8% and 8.2%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Here's Why Investors Should Hold FactSet (FDS) Stock Now
A prudent investment decision involves buying stocks that have solid prospects and selling those that carry risks. At times, it is rational to hold certain stocks that have enough potential but are weighed down by tough market conditions.
Here we discuss about FactSet Research Systems Inc. (FDS - Free Report) , a company that has an expected long-term earnings per share growth rate of 12.6%. Moreover, its earnings are expected to register 16.8% and 12.3% growth in fiscal 2018 and 2019, respectively.
In a year’s time, shares of FactSet have gained 25.7%, outperforming the S&P 500 Composite’s 14.8% rise.
We believe that stock has the potential to run further on the bourse and reasons behind our optimism include the company’s solid organic and inorganic growth.
FactSet Continues to Grow Organically
Currently, the company is witnessing sales growth across content and technology solutions (CTS) as well as analytics products and wealth management solutions. In the quarters ahead, FactSet’s proprietary content revenues are expected to gain momentum on strong demand driven by the company's competitive pricing strategy. We believe that its growing customer base, solid revenue growth coupled with high client retention rate and a competitive pricing strategy will positively impact FactSet’s results over the long term.
Additionally, FactSet is highly optimistic about the integrated data-related products and services within its analytical suite, which it offers to the investment community. With the market adapting a quantitative approach to save time, reduce operating expenses and increase work efficiency, the company’s innovative analytical product suite should benifit.
To this end, FactSet’s recent launch of Open: FactSet Marketplace looks promising. It is a new online platform that offers core financial and alternative datasets to address the increasing demand for integrated data. The company believes that this new platform will boost its CTS suite next year.
FactSet Research Systems Inc. Revenue (TTM)
FactSet Research Systems Inc. Revenue (TTM) | FactSet Research Systems Inc. Quote
Acquisitions Broadening Product Suite
Over the years, FactSet has made several acquisitions to expedite growth. The buyouts of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC and StreetAccount are most noteworthy. These acquisitions are expected to broaden the company’s product suite, thereby delivering innovative products and helping it evolve as a global financial database company. They also help FactSet to maximize value for its partners and provide customers with exclusive content sets. Notably, the acquisitions of BISAM and IDMS have increased the company’s international footprint, particularly in Europe.
Zacks Rank & Key Picks
Currently, FactSet has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services sector include Blucora , IQVIA Holdings (IQV - Free Report) and Paychex (PAYX - Free Report) . While Blucora sports a Zacks Rank #1, IQVIA Holdings and Paychex carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share growth rate for Blucora, IQVIA Holdings and Paychex is 20%, 11.8% and 8.2%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>