Here's Why You Should Retain Broadridge Financial (BR) Stock
Broadridge Financial Solutions, Inc. BR shares have gained 4.4% in the past month against the 2.1% decline of the industry it belongs to.
The company’s earnings for fiscal 2023 and 2024 are expected to improve 7.3% and 9.3%, respectively, year over year. Revenues are expected to increase 6.9% in fiscal 2023 and 5.1% in fiscal 2024.
Fundamental trends like growing demand for data and analytics, mutualization and digitization are likely to help drive sales growth. Broadridge’s capital markets and wealth management businesses are likely to remain in good shape as long as uncertainty-induced market volatility is prevalent.
The Investor Communication Solutions segment is likely to deliver continued growth as the company sees strong demand trends in its regulatory, data-driven fund, corporate issuer and customer communications solutions. A particularly large portion of the business involves the processing and distribution of proxy materials to investors and the ProxyEdge tool.
Broadridge Financial Solutions, Inc. Revenue (TTM)
Broadridge Financial Solutions, Inc. revenue-ttm | Broadridge Financial Solutions, Inc. Quote
Increasing presence in EMEA and APAC through the Itiviti acquisition should boost Broadridge’s global technology and operations segment. Itiviti is an effective strategic fit for the company’s capital market franchise and contributes significantly to the company’s international revenue growth.
Broadridge's current ratio at the end of the September quarter was 1.23, lower than the 1.25 reported at the end of the prior quarter. A decline in the current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.
Zacks Rank and Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader Zacks Business Services sector are DocuSign, Inc. DOCU and Sprinklr, Inc. CXM.
DocuSign currently sports a Zacks Rank #1 (Strong Buy). DOCU has a long-term earnings growth expectation of 13.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCU delivered a trailing four-quarter earnings surprise of 6.6% on average.
Sprinklr carries a Zacks Rank #2 (Buy) at present. CXM has a long-term earnings growth expectation of 30%.
Sprinklr delivered a trailing four-quarter earnings surprise of 102.8% on average.
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