Broadridge Financial Solutions, Inc. BR has partnered with International Business Machines IBM to create cloud-based solutions for clients in the financial services space.
As part of this collaboration, Broadridge will develop The Broadridge Private Cloud powered by IBM, using the Red Hat OpenShift platform. This will help the company manage workloads across its overall hybrid cloud infrastructure and enhance capabilities around next-gen and mission-critical solutions. It will transfer a significant part of its global infrastructure to IBM.
We observe that shares of Broadridge have gained 30.4% over the past year, outperforming the 28.5% growth of the industry it belongs to.
Accelerating Shift to Hybrid Cloud
The move is part of Broadridge’s efforts to accelerate its shift to a hybrid cloud model and provide next-generation SaaS solutions to clients. Consistent demand for technology solutions globally should help Broadridge gain significantly from its SaaS based offerings.
Mark Schlesinger, Broadridge's chief information officer stated, "Accelerating our cloud strategy will enable clients to leverage an industry-leading, highly flexible and resilient technology platform and allow Broadridge to accelerate our product roadmap, providing our clients with faster access to new industry solutions incorporating the ABCDs of InnovationTM (AI, Blockchain, Cloud, Digital).”
With increasing demand for technology solutions, Broadridge has ramped up investments in digital, AI, cloud and blockchain. These investments should be beneficial in the long run but weigh on the company’s bottom line in the near term.
Zacks Rank & Other Stocks to Consider
Broadridge currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are S&P Global SPGI and Booz Allen Hamilton BAH, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected EPS (three to five years) growth rate for S&P Global and Booz Allen is 10% and 13%, respectively.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research