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Here Are the Reasons Why You Should Pick Genpact Stock Now
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Genpact Limited (G - Free Report) is a business process outsourcing and information technology services provider which has the potential to sustain the momentum of its performance in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Genpact an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past three months. Shares of Genpact have returned 24.6% compared with the industry and the Zacks S&P 500 Composite’s growth of 12.5% and 2.7%, respectively.
Three Months Price Performance
Image Source: Zacks Investment Research
Solid Rank: Genpact has a Zacks Rank #2 (Buy) and a VGM Score of A at present. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Seven estimates for 2024 moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2024 earnings has moved up 3.6% in the same time.
Positive Earnings Surprise History: G has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 6.9% on average.
Strong Growth Prospects: Genpact’s 2024 revenues are expected to increase 4.7% year over year and 6.4% in 2025. Earnings are anticipated to grow 5.7% year over year in 2024 and 7.5% in 2025. Moreover, earnings are expected to register an 8.4% increase in the next five years.
Growth Factors: Genpact focuses on strong partnerships, comprehensive Data-Tech AI solutions and a simplified go-to-market approach. On the partnership front, the company witnessed a significant opportunity to propel revenue growth as relationships with partners strengthened. In the second quarter of 2024, Genpact reported that it has doubled the percentage of revenues generated by partners with line-of-sight to generate even higher in the future.
The importance given to the go-to-market approach drove revenue growth in second-quarter 2024. The significant expansion of gen-AI is becoming a primary driver of the business. In the first half of 2024, gen-AI bookings showed 10x growth compared with 2023. Genpact plays a pivotal role in leveraging AI to drive business transformation for its clients using deep expertise in the successful implementation of AI-first end-to-end business processes in production environments.
It has a long-term earnings growth expectation of 8%. EVTC delivered a trailing four-quarter earnings surprise of 11.1%, on average.
HNI flaunts a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 12%. HNI delivered a trailing four-quarter earnings surprise of 51.3%, on average.
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Here Are the Reasons Why You Should Pick Genpact Stock Now
Genpact Limited (G - Free Report) is a business process outsourcing and information technology services provider which has the potential to sustain the momentum of its performance in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Genpact an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past three months. Shares of Genpact have returned 24.6% compared with the industry and the Zacks S&P 500 Composite’s growth of 12.5% and 2.7%, respectively.
Three Months Price Performance
Solid Rank: Genpact has a Zacks Rank #2 (Buy) and a VGM Score of A at present. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Seven estimates for 2024 moved north in the past 60 days versus one southward revision, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2024 earnings has moved up 3.6% in the same time.
Positive Earnings Surprise History: G has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 6.9% on average.
Strong Growth Prospects: Genpact’s 2024 revenues are expected to increase 4.7% year over year and 6.4% in 2025. Earnings are anticipated to grow 5.7% year over year in 2024 and 7.5% in 2025. Moreover, earnings are expected to register an 8.4% increase in the next five years.
Growth Factors: Genpact focuses on strong partnerships, comprehensive Data-Tech AI solutions and a simplified go-to-market approach. On the partnership front, the company witnessed a significant opportunity to propel revenue growth as relationships with partners strengthened. In the second quarter of 2024, Genpact reported that it has doubled the percentage of revenues generated by partners with line-of-sight to generate even higher in the future.
The importance given to the go-to-market approach drove revenue growth in second-quarter 2024. The significant expansion of gen-AI is becoming a primary driver of the business. In the first half of 2024, gen-AI bookings showed 10x growth compared with 2023. Genpact plays a pivotal role in leveraging AI to drive business transformation for its clients using deep expertise in the successful implementation of AI-first end-to-end business processes in production environments.
Other Stocks to Consider
A couple of other top-ranked stocks in the broader Zacks Business Services sector are Evertec (EVTC - Free Report) and HNI (HNI - Free Report) .
Evertec sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a long-term earnings growth expectation of 8%. EVTC delivered a trailing four-quarter earnings surprise of 11.1%, on average.
HNI flaunts a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 12%. HNI delivered a trailing four-quarter earnings surprise of 51.3%, on average.