Why You Should Retain Genpact (G) Stock in Your Portfolio
Genpact Limited G is currently benefiting from its dominant position in the BPO services market and a strong clientele.
The company has an expected long-term earnings per share (three to five years) growth rate of 8.8%. Its earnings for 2023 and 2024 are expected to improve 7.3% and 12%, respectively, year over year.
Factors That Augur Well
Genpact is benefiting from its dominant position in the Business Process Outsourcing market. The company’s expertise in business analytics, digital and consulting services and its offerings, ranging from Industrial Internet of Things, user experience, order and supply chain management, data engineering, digital content management and risk management, direct procurement and logistics services, make it one of the leading providers of industry-specific solutions.
Genpact has a strong clientele worldwide. The company serves almost one-fifth of the Global Fortune 500, including some of the largest brands in the world. We believe that its expertise in providing BPO services will continue to expand its customer base in the long run.
Genpact Limited Revenue (TTM)
Genpact Limited revenue-ttm | Genpact Limited Quote
Genpact has a consistent track record of returning value to shareholders in the form of share repurchases and dividends. During 2022, 2021 and 2020, the company repurchased shares worth $214.1 million, $298.2 million and $137.1 million, respectively. It paid $91.8 million, $80.5 million, and $74.2 million in dividends to its shareholders during 2022, 2021 and 2020, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Some Risks
The outsourcing industry is labor-intensive and heavily dependent on foreign talent. Rising talent costs due to competition could curb the industry’s growth. Genpact, being one of the companies in the industry, is likely to get affected.
Zacks Rank and Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:
Maximus MMS: MMS sports a Zacks Rank of 1 (Strong Buy) at present and has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive earnings surprise history, beating the consensus mark in three of the trailing four quarters and missing once, the average surprise being 9.6%.
Green Dot GDOT: GDOT currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A.
The company has an impressive earnings surprise history, beating the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 37.3%.
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Genpact Limited (G) : Free Stock Analysis Report
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