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Here's Why Investors Should Buy FactSet (FDS) Stock Now
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FactSet Research Systems Inc. (FDS - Free Report) has performed well in the past year with the potential to sustain the momentum ahead. If you haven’t capitalized on its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s look at the factors that make the stock an attractive bet.
An Outperformer: A glimpse at FDS’s price trend shows that its shares have rallied 23.1% in the past year against the 11.4% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank: FactSet currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2022 have moved north in the past 60 days versus no southward revision, indicating analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up 3.6% in the past 60 days.
Positive Earnings Surprise History: FactSet has an impressive earnings surprise history. The bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 10.9%.
Strong Prospects: The Zacks Consensus Estimate for fiscal 2022 earnings is pegged at $13.48, indicating growth of 20.4% from the year-ago reported figure. Moreover, earnings are expected to register 9.1% growth in fiscal 2023. FDS’s long-term expected earnings per share (EPS) growth rate is 10%.
Driving Factors: We are impressed with FactSet’s consistent efforts to reward its shareholders through share repurchases and dividend payments. In fiscal 2021, FDS bought back shares worth $264.7 million and paid out a dividend of $117.9 million. During fiscal 2020, FDS repurchased shares worth $199.6 million and paid out a dividend of $110.4 million. In fiscal 2019, FDS repurchased shares worth $220.4 million and paid out a dividend of $100.1 million. Such moves underline FDS’ commitment to shareholder value addition and its confidence in its business. These initiatives not only instill investors’ confidence in the stock but also drive earnings.
Over the years, FactSet has made several acquisitions to expedite growth. The recent buyout of CUSIP Global Services (CGS) from S&P Global is expected to enhance its position in the global capital markets. Other noticeable acquisitions include the buyouts of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC, StreetAccount, etc. These transactions are aimed at aiding FDS in broadening its product suite, thereby delivering innovative products and evolving as a global financial database company.
Image: Shutterstock
Here's Why Investors Should Buy FactSet (FDS) Stock Now
FactSet Research Systems Inc. (FDS - Free Report) has performed well in the past year with the potential to sustain the momentum ahead. If you haven’t capitalized on its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s look at the factors that make the stock an attractive bet.
An Outperformer: A glimpse at FDS’s price trend shows that its shares have rallied 23.1% in the past year against the 11.4% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank: FactSet currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2022 have moved north in the past 60 days versus no southward revision, indicating analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up 3.6% in the past 60 days.
Positive Earnings Surprise History: FactSet has an impressive earnings surprise history. The bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 10.9%.
Strong Prospects: The Zacks Consensus Estimate for fiscal 2022 earnings is pegged at $13.48, indicating growth of 20.4% from the year-ago reported figure. Moreover, earnings are expected to register 9.1% growth in fiscal 2023. FDS’s long-term expected earnings per share (EPS) growth rate is 10%.
Driving Factors: We are impressed with FactSet’s consistent efforts to reward its shareholders through share repurchases and dividend payments. In fiscal 2021, FDS bought back shares worth $264.7 million and paid out a dividend of $117.9 million. During fiscal 2020, FDS repurchased shares worth $199.6 million and paid out a dividend of $110.4 million. In fiscal 2019, FDS repurchased shares worth $220.4 million and paid out a dividend of $100.1 million. Such moves underline FDS’ commitment to shareholder value addition and its confidence in its business. These initiatives not only instill investors’ confidence in the stock but also drive earnings.
Over the years, FactSet has made several acquisitions to expedite growth. The recent buyout of CUSIP Global Services (CGS) from S&P Global is expected to enhance its position in the global capital markets. Other noticeable acquisitions include the buyouts of BISAM, IDMS, Portware LLC, Code Red, Revere Data LLC, StreetAccount, etc. These transactions are aimed at aiding FDS in broadening its product suite, thereby delivering innovative products and evolving as a global financial database company.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank of 2 at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.