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 27.1% against the 3.6% fall of the industry it belongs to and the 14.6% 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: Broadridge currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, offer attractive investment opportunities for investors.
Northward Estimate Revisions: Three estimates 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 fiscal 2024 earnings has moved up nearly 1% in the past 30 days.
Broadridge Financial Solutions, Inc. Price and EPS Surprise
Broadridge Financial Solutions, Inc. price-eps-surprise | Broadridge Financial Solutions, Inc. Quote
Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2024 earnings of $7.7 indicates year-over-year growth of 9.8%. Moreover, earnings are expected to register 8% growth in fiscal 2025.
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 and matched once, delivering an earnings surprise of 5.4%, on average.
Driving Factors: Broadridge maintains a strong business model with substantial recurring revenue streams, which provides good visibility on its organic revenues in the near to mid-term. A significant portion of the income is derived from recurring fees, encompassing net new business, internal expansion and acquisition-related benefits. In fiscal 2023, recurring revenues accounted for nearly 66% of the total revenues despite ongoing economic uncertainties. Total revenues grew 6% year over year in fiscal 2023, following 14% and 10% growth in fiscal 2022 and 2021, respectively.
Increasing presence in EMEA and APAC through the Itiviti acquisition has boosted Broadridge’s global technology and operations segment. The segment's revenues increased 5% year over year in fiscal 2023. Itiviti is an effective strategic fit for the company’s capital market franchise and contributes significantly to its international revenue growth.
The Investor Communication Solutions segment is delivering continued growth as the company sees strong demand trends in its regulatory, data-driven fund, corporate issuer and customer communications solutions. The segment's revenues increased 6.6% year over year in fiscal 2023.
Other Stocks to Consider
Investors can also consider the following 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 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%.
Maximus MMS also carries a Zacks Rank of 2. The consensus mark for earnings in the first quarter of fiscal 2024 stands at $1.25 per share, indicating 33% year over year growth.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
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