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Reasons Why You Should Bet on Broadridge (BR) Stock Now
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Broadridge’s (BR - Free Report) shares have had an impressive run over the past three months. The stock gained 24.3%, significantly outperforming the 18.8% rise of the industry it belongs to and the 5.3% growth of the Zacks S&P 500 composite.
Let’s take a look at some factors that make the stock an attractive pick.
Solid Rank & VGM Score: Broadridge currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting the analysts’ confidence in the company. The Zacks Consensus Estimate for BR’s 2023 earnings has moved up 1% in the past 30 days.
Positive Earnings Surprise History: Broadridge has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an earnings surprise of 4.1%, on average.
Driving Factors: Broadridge is executing well on its growth strategy in governance, capital markets and wealth management. On the governance front, it is utilizing the next generation of digital communications and enhancing print, and enhancing mail services through advanced technology. In capital markets, Broadridge continues to develop its global platform capabilities and use next-generation solutions to improve its offerings. The 2021 acquisition of Itiviti is expanding the company’s services across equities and exchange-traded derivatives. On the wealth management front, Broadridge has developed a comprehensive wealth management platform that offers top-notch systems and data integration capabilities and enables clients.
Broadridge has a strong business model that provides recurring revenue generation capacity. A good percentage of its business comes from recurring fee revenues, which include contributions from net new businesses, internal growth and acquisition-related synergies. In the fourth quarter of fiscal 2022, total revenues of $1.7 billion increased 12.5% year over year and recurring fee revenues of $1.2 billion increased 15% from the year-ago quarter’s level.
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Reasons Why You Should Bet on Broadridge (BR) Stock Now
Broadridge’s (BR - Free Report) shares have had an impressive run over the past three months. The stock gained 24.3%, significantly outperforming the 18.8% rise of the industry it belongs to and the 5.3% growth of the Zacks S&P 500 composite.
Broadridge Financial Solutions, Inc. Price
Broadridge Financial Solutions, Inc. price | Broadridge Financial Solutions, Inc. Quote
Let’s take a look at some factors that make the stock an attractive pick.
Solid Rank & VGM Score: Broadridge currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2023 moved north in the past 60 days versus no southward revision, reflecting the analysts’ confidence in the company. The Zacks Consensus Estimate for BR’s 2023 earnings has moved up 1% in the past 30 days.
Positive Earnings Surprise History: Broadridge has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an earnings surprise of 4.1%, on average.
Driving Factors: Broadridge is executing well on its growth strategy in governance, capital markets and wealth management. On the governance front, it is utilizing the next generation of digital communications and enhancing print, and enhancing mail services through advanced technology. In capital markets, Broadridge continues to develop its global platform capabilities and use next-generation solutions to improve its offerings. The 2021 acquisition of Itiviti is expanding the company’s services across equities and exchange-traded derivatives. On the wealth management front, Broadridge has developed a comprehensive wealth management platform that offers top-notch systems and data integration capabilities and enables clients.
Broadridge has a strong business model that provides recurring revenue generation capacity. A good percentage of its business comes from recurring fee revenues, which include contributions from net new businesses, internal growth and acquisition-related synergies. In the fourth quarter of fiscal 2022, total revenues of $1.7 billion increased 12.5% year over year and recurring fee revenues of $1.2 billion increased 15% from the year-ago quarter’s level.
Other Stocks to Consider
Investors interestedin the broader Zacks Business Services sector can also consider stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and H&R Block, Inc. (HRB - Free Report) .
Avis Budget sports a Zacks Rank of 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 #2 at present. G has a long-term earnings growth expectation of 12.1%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
H&R Block currently flaunts a Zacks Rank of 1. HRB has a long-term earnings growth expectation of 12.5%.
HRB delivered a trailing four-quarter earnings surprise of 19.2%, on average.