Why Broadridge Financial (BR) Deserves to be in Your Portfolio
Broadridge Financial BR has had an impressive run over the past six months, gaining 20.3% and outperforming its industry’s 8.5% growth.
Reasons Why BR is an Attractive Pick Now
Solid Rank: BR currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Broadridge Financial Solutions, Inc. Price
Broadridge Financial Solutions, Inc. price | Broadridge Financial Solutions, Inc. Quote
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For the fiscal year 2024, the Zacks Consensus Estimate for earnings is pegged at $7.72 per share, indicating 10.1% growth from the year-ago figure. The estimate for 2024 revenues is pegged at $6.53 billion, which indicates growth of 7.7% from the year-ago reported figure. The estimate for full-year 2024 earnings has been revised slightly upward in the past 60 days. The favorable estimate revision reflects the confidence of brokers in the stock.
Positive Earnings Surprise History: BR has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched on one instance, delivering an average earnings surprise of 5.4%.
Bullish Industry Rank: The industry, to which Broadridge Financial belongs, currently has a Zacks Industry Rank of 101 (of 252 groups). Such a solid rank places the industry in the top 40% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: Broadridge Financial has consistently demonstrated its commitment to shareholder value through a stable track record of dividend payments. In the years 2023, 2022 and 2021, the company distributed dividends amounting to $331.0 million, $290.7 million and $261.7 million. These actions underscore its confidence in its business and dedication to returning value to its shareholders. Anticipating sustained income growth, we foresee a continuous positive cash flow, thus enabling the company to maintain a consistent dividend payout. Based on our projections, BR's adjusted net income is expected to increase 8.2%, 1.7% and 9.5% in fiscal years 2024, 2025 and 2026, respectively.
Broadridge Financial is successfully implementing its growth strategy across governance, capital markets and wealth management. In the realm of governance, the company is leveraging the latest digital communication tools and advancing its print and mail services using cutting-edge technology. In capital markets, it is consistently expanding its global platform capabilities and integrating next-generation solutions to enhance its overall offerings. In the wealth management sector, it has introduced an extensive wealth management platform, featuring state-of-the-art systems and seamless data integration capabilities, empowering its clients.
Other Stocks to Consider
Here are some other top-ranked stocks from the Business Services sector:
Gartner IT: The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure, while earnings are expected to decline 1.9%. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 34.4%.
IT carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DocuSign DOCU: The Zacks Consensus Estimate for DocuSign’s 2023 revenues indicates 9.2% growth from the year-ago figure, while earnings are expected to grow 41.4%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
DOCU sports a Zacks Rank of 1 at present.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
