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Norwalk, Connecticut-based FactSet Research Systems Inc. (FDS) is a leading provider of integrated financial information and analytical tools for the global investment community. Valued at $17.8 billion by market cap, it serves professionals such as portfolio managers, wealth managers, analysts, and investment bankers, offering comprehensive data and technology solutions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and FactSet Research Systems fits this criterion perfectly. Serving over 8,000 clients worldwide, its market strength is built on a reputation for delivering high-quality, comprehensive data that drives strong customer loyalty.
Financially, the company is highly stable, consistently profitable, and maintains a robust balance sheet. This financial strength enables the company to invest in innovation, pursue strategic acquisitions, and navigate economic challenges, all while reinforcing its leadership in the competitive financial information services industry.
However, the leading financial data company has pulled back 5.1% from its 52-week high of $488.64, achieved on March 20. Shares of FactSet Research Systems have surged 9.2% over the past three months, slightly outpacing the S&P 500 Financials Sector SPDR’s (XLF) 8.3% gains during the same period.
However, over the longer term, FDS stock is down 2.8% on a YTD basis but has climbed 6.4% over the past 52 weeks, underperforming XLF’s 19.8% gains and 33.9% returns, respectively.
Despite the weak price action in the long term, FDS stock has been trading above its 50-day moving average since mid-September and over its 200-day moving average since the end of August, suggesting a bullish trend.
On Sept. 19, FDS announced its Q4 earnings report, and the stock edged up 5.1%. It reported higher-than-expected profit and revenue, driven by increased demand for its financial data and analytics ahead of the U.S. Federal Reserve's anticipated interest rate cuts.
To emphasize the stock’s price performance, it is worth noting that its rival, S&P Global Inc. (SPGI), has outperformed FDS over the past year with a 39.4% return and a 17.6% rise in 2024.
Analysts are reasonably bearish about its prospects, considering the stock’s grim price performance. The stock has a consensus rating of “Moderate Sell” from the 15 analysts covering the stock, and it currently trades above its mean price target of $434.50.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
