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Reasons Why You Should Invest in Genpact Limited (G) Stock Now
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Genpact Limited (G - Free Report) is currently a well-performing stock in the outsourcing sector, with a significant rise in share price over the past six months and strong fundamentals. Therefore, if you haven’t taken advantage of the price appreciation yet, it’s time you add the stock to your portfolio as we believe that it has the potential to carry the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run in the past six months. G returned 11.7% against the Zacks S&P 500 composite’s 7.4% fall.
Solid Rank & VGM Score: Genpact 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: Three estimates for 2022 moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 increased 0.4%.
Positive Earnings Surprise History: Genpact has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 10.1%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2022 earnings of $2.72 implies year-over-year growth of 11%. Moreover, earnings are expected to register 12.4% growth in 2023. The stock has a long-term expected earnings per share growth rate of 12.1%.
Growth Drivers: Genpact’s focus on integrating process, analytics and digital technologies, along with its deep domain expertise, is helping it to win customers regularly. We expect the expanding customer base, stringent cost control, strategic acquisitions and aggressive share repurchase to drive overall results in the long haul.
Artificial Intelligence presents significant growth opportunities for Genpact. The company’s Digital Smart Enterprise Processes (Digital SEPs) is a patented approach to enhance the performance of clients’ business processes. Digital SEPs decrease inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies and experience-centric principles.
Genpact is benefiting from a strong clientele worldwide. The company's Global Client base has improved rapidly over the last five years (2016-2021) with revenues increasing at a healthy CAGR of 10.5% to reach $3.65 billion in 2021. Global Clients, as a percentage of total revenues, increased from approximately 86% in 2016 to approximately 91% in 2021. We believe that Genpact’s expertise in providing BPO services will continue to expand its customer base in the long run.
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Reasons Why You Should Invest in Genpact Limited (G) Stock Now
Genpact Limited (G - Free Report) is currently a well-performing stock in the outsourcing sector, with a significant rise in share price over the past six months and strong fundamentals. Therefore, if you haven’t taken advantage of the price appreciation yet, it’s time you add the stock to your portfolio as we believe that it has the potential to carry the momentum in the near term.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run in the past six months. G returned 11.7% against the Zacks S&P 500 composite’s 7.4% fall.
Genpact Limited Price
Genpact Limited price | Genpact Limited Quote
Solid Rank & VGM Score: Genpact 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: Three estimates for 2022 moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2022 increased 0.4%.
Positive Earnings Surprise History: Genpact has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering a positive average earnings surprise of 10.1%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2022 earnings of $2.72 implies year-over-year growth of 11%. Moreover, earnings are expected to register 12.4% growth in 2023. The stock has a long-term expected earnings per share growth rate of 12.1%.
Growth Drivers: Genpact’s focus on integrating process, analytics and digital technologies, along with its deep domain expertise, is helping it to win customers regularly. We expect the expanding customer base, stringent cost control, strategic acquisitions and aggressive share repurchase to drive overall results in the long haul.
Artificial Intelligence presents significant growth opportunities for Genpact. The company’s Digital Smart Enterprise Processes (Digital SEPs) is a patented approach to enhance the performance of clients’ business processes. Digital SEPs decrease inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies and experience-centric principles.
Genpact is benefiting from a strong clientele worldwide. The company's Global Client base has improved rapidly over the last five years (2016-2021) with revenues increasing at a healthy CAGR of 10.5% to reach $3.65 billion in 2021. Global Clients, as a percentage of total revenues, increased from approximately 86% in 2016 to approximately 91% in 2021. We believe that Genpact’s expertise in providing BPO services will continue to expand its customer base in the long run.
Other Stocks to Consider
A couple of other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - 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.
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.