Broadridge Financial Solutions, Inc. (BR - Free Report) is an outsourcing stock that has performed well in the past year and has the potential to carry the momentum forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes it an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Broadridge have returned 31.3% in the past year, outperforming the industry growth of 30.4% and the Zacks S&P 500 composite’s rally of 28.4%.
Solid Rank: Broadridge currently has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: One estimate for fiscal 2020 moved north in the past 30 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2020 inched up 0.2%.
Solid Growth Prospects: The Zacks Consensus Estimate for fiscal 2020 earnings of $5.1 indicates year-over-year growth of 9.4%. Earnings are expected to grow 8.5% year over year in fiscal 2021.
Growth Factors: Broadridge is focused on improving its financial performance. For 2020, the company expects 8-10% recurring revenue growth, around 100 basis points of margin expansion and 8% to 12% adjusted EPS growth.
Prudent execution of growth strategy in governance, capital markets and wealth management has strengthened Broadridge’s business and enhanced its long-term growth profile.
The recent acquisition of ClearStructure Financial Technology is expected to strengthen Broadridge's foothold in the private debt market.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are S&P Global (SPGI - Free Report) , Accenture (ACN - Free Report) and Booz Allen Hamilton (BAH - Free Report) , each carrying a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for S&P Global, Accenture and Booz Allen Hamilton is 10%, 10.3% and 13%, respectively.
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