Reasons Why You Should Bet on Broadridge (BR) Stock Now
Broadridge Financial Solutions, Inc.’s BR shares have had an impressive run over the past year. The stock has gained 30.3%, significantly outperforming the 11.6% rise of the industry it belongs to and the 22.7% growth of the Zacks S&P 500 composite.
Let’s take a look at some factors that make the stock an attractive pick.
Solid Rank & VGM Score: Broadridge currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions, Inc. Price
Broadridge Financial Solutions, Inc. price | Broadridge Financial Solutions, Inc. Quote
Northward Estimate Revisions: One estimate for 2023 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for BR’s 2023 earnings has moved up 1% in the past 60 days.
Strong Growth Prospects: The company’s Zacks Consensus Estimate for 2023 earnings of $7.63 indicates year-over-year growth of 8.8%. Moreover, earnings are expected to register 8.1% growth in 2024.
Positive Earnings Surprise History: Broadridge has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, matched once and missed once, delivering an earnings surprise of 0.5%, on average.
Driving Factors: 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.
Increasing presence in EMEA and APAC through the Itiviti acquisition has boosted 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.
Other Stocks to Consider
The following other top-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics VRSK beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2.
Automatic Data ADP currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
