FactSet Research Systems Inc. (FDS Quick Quote – ) has performed impressively on the exchange over the past year. The stock is up 30.1% while its affiliates are down 10.3%, while the Zacks S&P 500 Composite Index is up 8.6%.
FDS has an impressive B. This style score condenses all the essential metrics in a company's financial statements to truly understand the quality and sustainability of its growth.
FactSet's revenue is expected to grow 14.4% and 16.8% year-over-year in 2022 and 2023, respectively. Revenue is expected to grow 8.2% and 9.3% in 2022 and 2023, respectively.
Factors of good omens
FactSet has been delivering extensive data, sophisticated analytics and flexible technology to financial professionals worldwide for over 40 years and is now benefiting from a growing client base and a strong global presence.
FactSet's cash and cash equivalents balance of $709 million at the end of the first quarter of fiscal 2022 was above its long-term debt level of $575 million, highlighting that the company has sufficient cash to cover its debt load. The strong cash position has allowed the company to make strategic acquisitions, invest in growth initiatives and return cash through regular quarterly dividend payments and share repurchases. The company has no short-term debt that needs to be retired.
Over the years, FactSet has made several acquisitions to accelerate growth. The recent acquisition of Cobalt Software is expected to enhance the company's data and workflow solutions and expand its private market offerings. Another acquisition, BTU Analytics, expands FactSet's industry-specific or in-depth sector content for investment professionals.
FactSet continues to face intense competition from other players in the marketplace that provide financial market data, analytics and related services. These competitors may be able to expand their product and data offerings more effectively, price their products more aggressively or react more quickly to market developments in order to attract new clients and retain existing clients.
Zacks Rank and Stocks to Consider
FactSet currently owns the Zacks Rank #3 (Hold).
Some stocks in the broader sector that investors may consider are Cross Country Healthcare (CCRN Quick Quote -), Accenture (ACN Quick Quote -) and Clean Harbors (CLH Quick Quote -).
Cross Country Healthcare has a Zacks Rank #1 (Strong Buy). The company's long-term earnings are up 6.6%. As you can see.
Cross Country Healthcare has unexpectedly averaged 41.5% earnings over the past four quarters. CCRN's stock price has soared 44.2% over the past year.
Accenture's Zacks ranks second (Buy). The company's expected earnings growth for the year is 19.8%. On average, it has achieved four consecutive quarterly earnings surprises of 5.3%.
Accenture's stock price has soared 16.9 percent in the past year. The company's long-term earnings grew 10 percent.
Clean Harbors owns Zacks in second place. The company has averaged 43.2% earnings surprise for four consecutive quarters.
CLH's share price has risen 17.5% in the past year.