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Reasons Why Should You Buy Genpact (G) Stock Right Now
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A successful investor understands the importance of adding well-performing stocks in the portfolio at the right time. Notably, indicators of a stock’s bullish run include a rise in share price and strong fundamentals.
Genpact Limited (G - Free Report) is one such technology stock that has been on healthy growth trajectory, of late. The company’s shares have returned 32.9% in a year, substantially outperforming the 9.1% rally of the industry.
Let’s delve deeper and take a look at some of the factors aiding the performance.
Positive Earnings Surprise History
Genpact has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 10.4%.
Further, it has a long-term expected EPS growth rate of 10%.
Upward Estimate Revisions
In the last 60 days, the Zacks Consensus Estimate for Genpact’s fiscal 2017 witnessed upward revisions. The Zacks Consensus Estimate for fiscal 2017 is pegged at $1.60 per share compared with $1.56 per share projected 60 days ago.
Valuation Looks Impressive
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 21.7x, significantly lower than the Zacks industry’s average of 29.2x. The ratio, which is obtained by dividing a stock’s current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Consequently, the lower the P/E of a stock, the better it is for a value investor.
Other Driving Factors
Genpact’s domain expertise in business analytics, digital and consulting sectors is a key catalyst for growth.
Notably, management is positive about the growing pipeline on the back of increasing adoption of the company’s transformation services. The enthusiastic approach of the C-level of different companies in transforming business models through digital, data and analytics is turning out to be a positive.
Additionally, supply chain management is another sector where the company has growth opportunities. Being recognized as one of the top three leaders in supply chain management by The Everest Group is another positive.
We believe its diverse portfolio, enhanced by the offerings of the acquired organizations, will provide Genpact with a competitive advantage against peers like Cognizant Technology Solutions and Accenture.
Bottom Line
Looking at these positives, we believe that Genpact is one technology stock that deserves a place in investors’ portfolio.
Thus, investing in this stock can yield returns in the short term.
NVIDIA, DXC and Analog Devices have a long-term earnings growth rate of 10.3%, 10.5% and 10.4%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Reasons Why Should You Buy Genpact (G) Stock Right Now
A successful investor understands the importance of adding well-performing stocks in the portfolio at the right time. Notably, indicators of a stock’s bullish run include a rise in share price and strong fundamentals.
Genpact Limited (G - Free Report) is one such technology stock that has been on healthy growth trajectory, of late. The company’s shares have returned 32.9% in a year, substantially outperforming the 9.1% rally of the industry.
Let’s delve deeper and take a look at some of the factors aiding the performance.
Positive Earnings Surprise History
Genpact has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, delivering a positive average earnings surprise of 10.4%.
Further, it has a long-term expected EPS growth rate of 10%.
Upward Estimate Revisions
In the last 60 days, the Zacks Consensus Estimate for Genpact’s fiscal 2017 witnessed upward revisions. The Zacks Consensus Estimate for fiscal 2017 is pegged at $1.60 per share compared with $1.56 per share projected 60 days ago.
Valuation Looks Impressive
On the valuation front too, the stock looks attractive. The company currently trades at a forward P/E multiple of 21.7x, significantly lower than the Zacks industry’s average of 29.2x. The ratio, which is obtained by dividing a stock’s current market price with its historical or estimated earnings, measures how much an investor needs to shell out per dollar of earnings. Consequently, the lower the P/E of a stock, the better it is for a value investor.
Other Driving Factors
Genpact’s domain expertise in business analytics, digital and consulting sectors is a key catalyst for growth.
Notably, management is positive about the growing pipeline on the back of increasing adoption of the company’s transformation services. The enthusiastic approach of the C-level of different companies in transforming business models through digital, data and analytics is turning out to be a positive.
Additionally, supply chain management is another sector where the company has growth opportunities. Being recognized as one of the top three leaders in supply chain management by The Everest Group is another positive.
We believe its diverse portfolio, enhanced by the offerings of the acquired organizations, will provide Genpact with a competitive advantage against peers like Cognizant Technology Solutions and Accenture.
Bottom Line
Looking at these positives, we believe that Genpact is one technology stock that deserves a place in investors’ portfolio.
Thus, investing in this stock can yield returns in the short term.
Zacks Rank & Other Key Picks
Genpact carries a Zacks Rank #2 (Buy).
NVIDIA Corporation (NVDA - Free Report) , DXC Technology Company (DXC - Free Report) and Analog Devices, Inc. (ADI - Free Report) are some other top-ranked stocks in the same sector. All the three companies flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA, DXC and Analog Devices have a long-term earnings growth rate of 10.3%, 10.5% and 10.4%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>