Broadridge (BR) Rises 52% 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 51.7%, significantly outperforming the 18.3% rally of the industry it belongs to and the 32.6% 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.
Broadridge Financial Solutions, Inc. Price
Broadridge Financial Solutions, Inc. price | Broadridge Financial Solutions, Inc. Quote
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, which offers top-notch systems and data integration capabilities.
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 $331.0 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 is likely to grow 8.8%, 2.5% and 9.7% in fiscal 2024, 2025 and 2026, respectively.
BR's current ratio at the end of second-quarter fiscal 2024 was pegged at 1.4, higher than the year-ago quarter’s 1.26. 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 paying off its short-term obligations with ease.
Zacks Rank and Stocks to Consider
Broadridge Financial currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks from the broader Zacks Business Services sector are Booz Allen Hamilton BAH and Barrett Business Services BBSI.
Booz Allen Hamilton sports a Zacks Rank of 1 (Strong Buy) at present. BAH has a long-term earnings growth expectation of 12.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BAH delivered a trailing four-quarter earnings surprise of 12.7%, on average.
Barrett Business Services currently carries a Zacks Rank of 2 (Buy). BBSI has a long-term earnings growth expectation of 14%.
BBSI delivered a trailing four-quarter earnings surprise of 77.7%, on average.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report
