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Why You Should Retain Genpact (G) Stock in Your Portfolio
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Genpact Limited (G - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company has an expected long-term earnings per share (three to five years) growth rate of 9.4%. Its earnings for 2023 and 2024 are expected to improve 8.8% and 11.4%, respectively, year over year.
Factors That Augur Well
Genpact is benefiting from a strong clientele worldwide. The company serves almost one-fifth of the Global Fortune 500, including some of the largest brands in the world. We believe that its expertise in providing BPO services will continue to expand its customer base in the long run.
Artificial Intelligence (AI) presents a significant growth opportunity 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 integrate Lean Six Sigma methodologies, which decrease inefficiency and improve process quality, using AI with advanced domain-specific digital technologies and experience-centric principles.
Further, Genpact Cora is an automation to AI-based platform that combines the company’s proprietary automation, analytics and AI technologies into a single common platform and accelerates clients’ digital transformations. Acquisitions like Rage Framework and design thinking-based companies, such as Tandem Seven, have also expanded Genpact’s AI product portfolio. We believe that Genpact is well-positioned to take advantage of improvements in the AI space.
Genpact has a consistent record of returning value to shareholders in the forms of share repurchases and dividends. During 2022, 2021 and 2020, the company repurchased shares worth $214.1 million, $298.2 million and $137.1 million, respectively. It paid out $91.8 million, $80.5 million and $74.2 million as dividends to its shareholders in 2022, 2021 and 2020, respectively. Such shareholder-friendly moves indicate the company’s confidence in business.
A Key Risk
The outsourcing industry is labor-intensive and heavily dependent on foreign talent. High talent costs due to competition can curb the industry’s growth. Genpact, being one of the companies in the industry, may get affected.
Here are a few better-ranked stocks from the broader Business Services, which can be good investment opportunities.
Omnicom Group's (OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised 0.7% upward in the past 30 days. For first-quarter 2023, OMC’s earnings are expected to grow slightly from the year-ago reported figure.
The company has beaten the Zacks Consensus Estimate in all the four trailing quarters, with an average surprise of 8%. OMC currently sports a Zacks Rank #1.
Gartner (IT - Free Report) is being aided by the diverse addressable market with low customer concentration. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $2.04, which has been revised 6.3% upward in the past 30 days. For first-quarter 2023, IT’s earnings are expected to register a 12.5% fall on a year-over-year basis.
The company has beaten the Zacks Consensus Estimate in all the four trailing quarters, with an average surprise of 32.7%. IT currently carries a Zacks Rank #2 (Buy).
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Why You Should Retain Genpact (G) Stock in Your Portfolio
Genpact Limited (G - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company has an expected long-term earnings per share (three to five years) growth rate of 9.4%. Its earnings for 2023 and 2024 are expected to improve 8.8% and 11.4%, respectively, year over year.
Factors That Augur Well
Genpact is benefiting from a strong clientele worldwide. The company serves almost one-fifth of the Global Fortune 500, including some of the largest brands in the world. We believe that its expertise in providing BPO services will continue to expand its customer base in the long run.
Genpact Limited Revenue (TTM)
Genpact Limited revenue-ttm | Genpact Limited Quote
Artificial Intelligence (AI) presents a significant growth opportunity 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 integrate Lean Six Sigma methodologies, which decrease inefficiency and improve process quality, using AI with advanced domain-specific digital technologies and experience-centric principles.
Further, Genpact Cora is an automation to AI-based platform that combines the company’s proprietary automation, analytics and AI technologies into a single common platform and accelerates clients’ digital transformations. Acquisitions like Rage Framework and design thinking-based companies, such as Tandem Seven, have also expanded Genpact’s AI product portfolio. We believe that Genpact is well-positioned to take advantage of improvements in the AI space.
Genpact has a consistent record of returning value to shareholders in the forms of share repurchases and dividends. During 2022, 2021 and 2020, the company repurchased shares worth $214.1 million, $298.2 million and $137.1 million, respectively. It paid out $91.8 million, $80.5 million and $74.2 million as dividends to its shareholders in 2022, 2021 and 2020, respectively. Such shareholder-friendly moves indicate the company’s confidence in business.
A Key Risk
The outsourcing industry is labor-intensive and heavily dependent on foreign talent. High talent costs due to competition can curb the industry’s growth. Genpact, being one of the companies in the industry, may get affected.
Zacks Rank and Stocks to Consider
Genpact currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are a few better-ranked stocks from the broader Business Services, which can be good investment opportunities.
Omnicom Group's (OMC - Free Report) internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised 0.7% upward in the past 30 days. For first-quarter 2023, OMC’s earnings are expected to grow slightly from the year-ago reported figure.
The company has beaten the Zacks Consensus Estimate in all the four trailing quarters, with an average surprise of 8%. OMC currently sports a Zacks Rank #1.
Gartner (IT - Free Report) is being aided by the diverse addressable market with low customer concentration. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $2.04, which has been revised 6.3% upward in the past 30 days. For first-quarter 2023, IT’s earnings are expected to register a 12.5% fall on a year-over-year basis.
The company has beaten the Zacks Consensus Estimate in all the four trailing quarters, with an average surprise of 32.7%. IT currently carries a Zacks Rank #2 (Buy).