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Here's Why You Should Retain Broadridge Financial (BR) Stock
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Broadridge Financial Solutions, Inc. (BR - Free Report) is currently benefiting from its strong business model, backed by higher recurring fee revenues.
The company’s earnings for fiscal 2023 and 2024 are expected to improve 7% and 9.8%, respectively, year over year. Revenues are expected to increase 6.8% in fiscal 2023 and 6% in fiscal 2024.
Broadridge’s Tailwinds
Fundamental trends like growing demand for data and analytics, mutualization and digitization are likely to help drive sales growth. Broadridge’s capital markets and wealth management businesses are likely to remain in good shape as long as uncertainty-induced market volatility is prevalent.
Broadridge Financial Solutions, Inc. Price and Consensus
The Investor Communication Solutions segment is likely to deliver continued growth as the company sees strong demand trends in its regulatory, data-driven fund, corporate issuer and customer communications solutions. A particularly large portion of the business involves the processing and distribution of proxy materials to investors and the ProxyEdge tool.
Increasing presence in EMEA and APAC through the Itiviti acquisition is likely to boost Broadridge’s global technology and operations segment. Itiviti is an effective strategic fit for the company’s capital market franchise and contributes significantly to the company’s international revenue growth.
Some Risks
Broadridge has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter fiscal 2023 was $280 million compared with the long-term debt level of $4.1 billion.
Zacks Rank and Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Trane Technologies (TT - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) .
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Here's Why You Should Retain Broadridge Financial (BR) Stock
Broadridge Financial Solutions, Inc. (BR - Free Report) is currently benefiting from its strong business model, backed by higher recurring fee revenues.
The company’s earnings for fiscal 2023 and 2024 are expected to improve 7% and 9.8%, respectively, year over year. Revenues are expected to increase 6.8% in fiscal 2023 and 6% in fiscal 2024.
Broadridge’s Tailwinds
Fundamental trends like growing demand for data and analytics, mutualization and digitization are likely to help drive sales growth. Broadridge’s capital markets and wealth management businesses are likely to remain in good shape as long as uncertainty-induced market volatility is prevalent.
Broadridge Financial Solutions, Inc. Price and Consensus
Broadridge Financial Solutions, Inc. price-consensus-chart | Broadridge Financial Solutions, Inc. Quote
The Investor Communication Solutions segment is likely to deliver continued growth as the company sees strong demand trends in its regulatory, data-driven fund, corporate issuer and customer communications solutions. A particularly large portion of the business involves the processing and distribution of proxy materials to investors and the ProxyEdge tool.
Increasing presence in EMEA and APAC through the Itiviti acquisition is likely to boost Broadridge’s global technology and operations segment. Itiviti is an effective strategic fit for the company’s capital market franchise and contributes significantly to the company’s international revenue growth.
Some Risks
Broadridge has more long-term debt outstanding than cash. Cash and cash equivalent balance at the end of second-quarter fiscal 2023 was $280 million compared with the long-term debt level of $4.1 billion.
Zacks Rank and Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Trane Technologies (TT - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) .
Trane Technologies carries a Zacks Rank #2 (Buy) at present. TT has a long-term earnings growth expectation of 9.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Trane delivered a trailing four-quarter earnings surprise of 8.2% on average.
Interpublic currently sports a Zacks Rank #1. IPG has a long-term earnings growth expectation of 4.6%.
IPG delivered a trailing four-quarter earnings surprise of 8.2% on average.