Broadridge (BR) Rises 33% in a Year: What You Should Know
Broadridge Financial Solutions, Inc.’s BR shares have had an impressive run over the past year. The stock has gained 33.1% against the 1.6% decline of the industry it belongs to and the 15.9% growth of the Zacks S&P 500 composite.
What’s Behind the Rally
Broadridge is executing well on its growth strategy in governance, capital markets and wealth management. On the governance front, it is utilizing the next generation of digital communication and enhancing print and mail services through advanced technology.
In capital markets, the company continues to develop its global platform capabilities and use next-generation solutions to improve its offerings. On the wealth management front, Broadridge has developed a comprehensive wealth management platform that offers top-notch systems and data integration capabilities.
Broadridge Financial Solutions, Inc. Price
Broadridge Financial Solutions, Inc. price | Broadridge Financial Solutions, Inc. Quote
Commitment to shareholder returns makes BR a reliable way for investors to compound wealth over the long term. In 2023, 2022 and 2021, the company paid $331 million, $290.7 million and $261.7 million, respectively, in dividends. We are expecting steady growth in income, which will translate to steady cash flow, enabling Broadridge to pay out stable dividends. Per our estimates, the firm’s adjusted net income will grow 8.2%, 1.7% and 9.5% in fiscal 2024, 2025 and 2026, respectively.
BR's current ratio at the end of first-quarter fiscal 2024 was pegged at 1.44, higher than the current ratio of 0.58 reported at the end of the previous quarter and 1.23 reported at the end of the prior-year quarter. An increase in the current ratio is desirable as it indicates that it may not have problems meeting its short-term debt obligations. A current ratio of more than 1 often means that the company will be able to pay off its short-term obligations with ease.
Zacks Rank and Other Stocks to Consider
Broadridge currently carries a Zacks Rank #2 (Buy).
Investors can consider the following other top-ranked stocks:
Rollins ROL currently carries a Zacks Rank #2. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents, indicating year-over-year growth of 17.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
FTI Consulting FCN also carries a Zacks Rank #2. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.
FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
