Reasons to Bet on FactSet Research Systems (FDS) Stock Now
FactSet Research Systems Inc. FDS is a business information services provider that has performed impressively in the past year and has the potential to sustain the momentum in the near term. If you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes FactSet an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that its shares have gained 30.7% over the past year, significantly outperforming the 8.4% growth of the industry it belongs to.
FactSet Research Systems Inc. Price
FactSet Research Systems Inc. price | FactSet Research Systems Inc. Quote
Solid Rank: FactSet currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Positive Earnings Surprise History: FactSet has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed estimates in the other two, delivering an earnings surprise of 2.4%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for FactSet’s fiscal 2022 earnings, $12.21 per share, reflects year-over-year growth of 9%. Earnings are expected to register 7.9% growth in fiscal 2023. The stock has a long-term expected earnings per share growth rate of 8.5%.
Driving Factors: FactSet has been engaged for more than 40 years in delivering extensive data, sophisticated analytics and flexible technology to global financial professionals, and is currently benefiting from a growing customer base and strong global presence. The company’s organic revenues in fiscal 2020 improved 4% to $1.49 billion, driven by the addition of 301 clients. Annual Subscription Value (ASV) of $1.56 billion increased 5.4% year over year. The company generated $956.6 million revenues from the United States, up 5.2% year over year. Internationally, revenues came in at $582.5 million, up 6.2% year over year.
Over the years, FactSet has made several acquisitions to expedite growth. The recent acquisition of Cobalt Software is expected enhance the company’s data and workflow solutions, and expand its private markets offering. Another acquisition, BTU Analytics, expands FactSet’s industry-specific or deep-sector content for investment professionals.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget CAR, Cross Country Healthcare, Inc. CCRN and CRA International, Inc. CRAI.
Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 590.9% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sport a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 180.8% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN sport a Zacks #1 Rank.
CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 89.8% in the past year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 Rank.
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