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Here's Why You Should Add FactSet Stock in Your Portfolio Now

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FactSet Research Systems Inc. (FDS - Free Report) FactSet has been engaged for more than 40 years in delivering extensive data, sophisticated analytics and flexible technology to global financial professionals and is currently benefiting from a growing customer base and strong global presence. The company added 383 clients in fiscal 2023 and nine in the third quarter of fiscal 2024, driven by an increase in corporate and wealth clients.

The 2023 acquisition of idaciti supports FactSet’s ongoing initiative to digitally revamp its content collection infrastructure while also expediting the availability of essential data sets that underpin advanced future workflows. The 2022 acquisition of CUSIP Global Services has strengthened the company’s position in the global capital markets.

FactSet has a consistent track record of rewarding its shareholders through share repurchases and dividends. During fiscal 2023, 2022 and 2021, the company repurchased shares worth $18.64 million, 199.6 million and $264.7 million, respectively. It paid dividends of $125.9 million, 110.4 million and $117.9 million during fiscal 2023, 2022 and 2021, respectively. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. They not only instill investors’ confidence but also positively impact earnings and share prices.

FDS 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. Thus, the company appears to be a compelling investment proposition at the moment.

FDS has a decent earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 1.6%.

The Zacks Consensus Estimate for FDS’ fiscal 2024 earnings is pegged at $16.32, which implies 12.2% year-over-year growth. Moreover, earnings are expected to register a 7.2% increase in 2025.

Other Stocks to Consider

A couple of other top-ranked stocks from the broader Zacks Business Services sector are Genpact (G - Free Report) and Jamf (JAMF - Free Report) .

Genpact carries a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 8.4%.G delivered a trailing four-quarter earnings surprise of 6.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Jamf currently carries a Zacks Rank of 2. The company has a long-term earnings growth expectation of 57%. JAMF delivered a trailing four-quarter earnings surprise of 15.7%, on average.


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FactSet Research Systems Inc. (FDS) - free report >>

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