/Factset%20Research%20Systems%20Inc_%20logo%20on%20keyboard-by%20rafapress%20via%20Shutterstock.jpg)
FactSet Research Systems Inc. (FDS) empowers the financial world with cutting-edge data, analytics, and open technology, serving over 8,200 global clients and 216,000 users. From buy-side and sell-side professionals to wealth managers and corporations, FactSet's innovative platform and tailored solutions drive smarter decisions and seamless workflows. With a client-first approach and comprehensive content, FactSet enables financial leaders to think bigger and achieve more every day.
The Connecticut-based company's market cap presently stands at $18.6 billion. Shares of this financial analytics company have gained 6.4% over the past year, lagging behind the broader S&P 500 Index’s ($SPX) 31.8% annual return during the same time frame. Plus, in 2024, the stock is up just 2.6% compared to the SPX’s healthy 25.8% return on a YTD basis.
Zooming in further, FDS’ underperformance becomes even more evident when compared to the iShares U.S. Financials ETF’s (IYF) impressive surge of almost 50% over the past 52 weeks and 39.3% return on a YTD basis.
Despite its underwhelming price action over the longer term, on Sep. 19, FactSet dropped its stronger-than-expected fiscal 2024 Q4 earnings results, triggering a 5.1% surge in its shares on the same day. FactSet closed the final quarter of fiscal 2024 on a high note, with revenues climbing 4.9% year over year to $562.2 million, while its adjusted EPS soared a notable 23.8% annually to $3.74, fueled by solid revenue growth, improved margins, and a favorable tax rate.
For the current fiscal year, ending in August 2025, analysts expect FDS’ EPS to increase 4.6% year over year to $17.20. Moreover, the company’s earnings surprise history is promising. It surpassed the consensus estimates in each of the last four quarters.
Yet, among the 18 analysts covering the stock, the consensus view is a “Hold,” which is based on one “Strong Buy,” 11 “Hold,” and six “Strong Sell” ratings. In fact, the mood on Wall Street is now slightly more somber than it was three months ago when five analysts advocated a “Strong Sell.”
Meanwhile, recently, on Nov. 15, BMO Capital raised its price target on FactSet to $521 from $471, maintaining a “Market Perform” rating. The upgrade comes after a deeper appreciation of the company’s technology offerings following FactSet’s Investor Day hosted on Nov. 14.
While the investment firm updated its medium-term outlook to reflect slightly slower annual growth than previously anticipated, it also signaled an acceleration from current levels. Additionally, BMO noted that the company’s margin expansion targets are reasonable, thanks to significant investments.
Although the stock is also trading flat to its average analyst price target of $464.93, the Street-high price target of $525 suggests that FDS can still climb as much as 7.3% from current levels.
