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Reasons Why You Should Invest in Genpact Limited Stock Now
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Genpact Limited (G - Free Report) is a well-performing stock, with a significant rise in price over the past year 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 is Genpact an Attractive Pick?
Share Price Appreciation: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past year. G has returned 38%, which compared favorably with the 32% rally of the industry and the Zacks S&P 500 composite’s 31.7% rise.
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.
Northward Estimate Revisions: Six estimates for 2024 moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2024 increased 2.2%.
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 7.8%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2024 earnings of $3.22 indicates year-over-year growth of 8.1%. Moreover, earnings are expected to register 6.9% growth in 2025. The stock has a long-term expected earnings per share growth rate of 9.8%.
Growth Drivers: Genpact’s focus on integrating processes, analytics and digital technologies, along with its deep domain expertise, helps it 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 has a consistent record of returning value to shareholders through share repurchases and dividend payments. During 2023, 2022 and 2021, the company repurchased shares worth $225.4 million, $214.1 million and $298.2 million, respectively. The company paid $100 million, $91.8 million and $80.5 million in dividends to its shareholders during 2023, 2022 and 2021, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Genpact's current ratio at the end of third-quarter 2024 was pegged at 1.85, higher than the industry average of 1.08. A current ratio of more than 1often indicates that the company will be easily paying off its short-term obligations.
Image: Bigstock
Reasons Why You Should Invest in Genpact Limited Stock Now
Genpact Limited (G - Free Report) is a well-performing stock, with a significant rise in price over the past year 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 is Genpact an Attractive Pick?
Share Price Appreciation: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past year. G has returned 38%, which compared favorably with the 32% rally of the industry and the Zacks S&P 500 composite’s 31.7% rise.
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.
Northward Estimate Revisions: Six estimates for 2024 moved north over the past 30 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2024 increased 2.2%.
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 7.8%.
Strong Growth Prospects: The Zacks Consensus Estimate for the company’s 2024 earnings of $3.22 indicates year-over-year growth of 8.1%. Moreover, earnings are expected to register 6.9% growth in 2025. The stock has a long-term expected earnings per share growth rate of 9.8%.
Growth Drivers: Genpact’s focus on integrating processes, analytics and digital technologies, along with its deep domain expertise, helps it 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 has a consistent record of returning value to shareholders through share repurchases and dividend payments. During 2023, 2022 and 2021, the company repurchased shares worth $225.4 million, $214.1 million and $298.2 million, respectively. The company paid $100 million, $91.8 million and $80.5 million in dividends to its shareholders during 2023, 2022 and 2021, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Genpact's current ratio at the end of third-quarter 2024 was pegged at 1.85, higher than the industry average of 1.08. A current ratio of more than 1often indicates that the company will be easily paying off its short-term obligations.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Parsons (PSN - Free Report) and Qifu Technology, Inc. (QFIN - Free Report) .
Parsons sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PSN has a long-term earnings growth expectation of 18.6%. It delivered a trailing four-quarter earnings surprise of 17.5%, on average.
Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%.
QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.